The number of Ethereum whales has been on the rise in recent months, with these investors accumulating over $9 billion worth of ETH.
This trend is likely being driven by a number of factors, including the increasing popularity of Ethereum’s Proof of Stake (PoS) consensus mechanism and the launch of the Shanghai upgrade.
Proof of Stake
Ethereum is in the process of transitioning from a Proof of Work (PoW) consensus mechanism to a Proof of Stake (PoS) mechanism. PoW is a more energy-intensive consensus mechanism, while PoS is more energy-efficient.
This transition is likely motivating many ETH holders to acquire additional tokens to stake and participate as validators.
Shanghai Upgrade
The Shanghai upgrade was launched on March 10, 2023. This upgrade introduced a number of key enhancements to the Ethereum network, including the enablement of staked ETH. This is likely another factor that is contributing to the rise of Ethereum whales.
Different Behaviors of Ethereum Holders
While Ethereum whales continue to amass ETH, it is worth noting that different categories of Ethereum holders are exhibiting different behaviors.
Over the past 30 days, long-term holders, affectionately known as hodlers, have increased their holdings by 4.54%. This group of steadfast investors has demonstrated unwavering faith in Ethereum’s long-term potential.
On the other hand, midterm holders, or cruisers, experienced a marginal decrease in their balances by 0.38%, while short-term holders, or traders, saw a significant decrease of 17.5%.
Dominant Whales
The majority of Ethereum addresses belong to smaller holders, referred to as shrimps, who possess less than 0.1 ETH.
At the opposite end of the spectrum, institutional investors and large Ethereum whales hold substantial influence over the market.
The addresses holding between 1,000 and 100,000 ETH command a significant portion of the coin’s total supply, which currently amounts to an estimated value of approximately $70.09 billion.
Mohammad Ali is a fintech and cryptocurrency writer who has been covering the intersection of finance and technology for several years. Ali has a deep understanding of the financial industry and the ways in which technology is changing it, with a special focus on the rise of digital currencies and blockchain technology.
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