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Crypto whales massively increase their Ethereum holdings

Big investors are accumulating Ethereum, while ETH stock market positions are shrinking faster than Bitcoin's - that's what's behind it.

By Mike Hesp
• 3 min read
Crypto whales massively increase their Ethereum holdings

Big investors are accumulating Ethereum, while ETH stock market positions are shrinking faster than Bitcoin's - that's what's behind it.

Although the price of Ethereum (ETH) is trading at the same level as three years ago, large investors' ETH holdings have tripled. Despite the intense volatility in the crypto market, cryptowhales do not seem to care about the recent price fluctuations and are sticking to their ETH.

Number of Ethereum whales growing faster and faster.

Source: CryptoQuant

This development suggests that crypto whales become increasingly convinced that the price of Ether will rise in the long run. By accumulating large amounts of ETH, these Whales are showing that they believe in both the continued improvements of the network and the increasing adoption of Ethereum. If these Whales hold large amounts of ETH and withdraw from the regular trading market, the available supply will decrease. This could have a positive impact on the price of Ethereum if demand stays the same or increases.

Ethereum on exchanges falls faster than Bitcoin

The decline of Ethereum and Bitcoin on centralized trading platforms such as Binance, Coinbase and Bitpanda continues. According to Glassnode's latest data, the share of ETH on all exchanges has dropped significantly from more than 16 percent in March 2023 to 10.66 percent in May 2024. Bitcoin shows a similar but less pronounced trend, falling from about 13 percent to 11.85 percent in the same period. On the one hand, this trend reflects growing investor distrust in the security of centralized exchanges. Many investors prefer to store their cryptocurrencies in more secure hardware wallets and are more inclined to hold their holdings for the long term.

ETH's sharper decline compared to BTC may indicate that investors continue to expand their use of Ether in the world of decentralized finance to take advantage of loans, staking and other investment opportunities. This trend suggests that investors are taking a more positive long-term view of Ethereum, fueled by ETH's versatile uses.

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