Shift in Ethereum Holding Distribution as Whales Sell and Sharks Buy

On-chain analytics firm Santiment recently released data showing that Ethereum (ETH) investors have exhibited varying behaviors over the past year, depending on their holdings. The data indicates that addresses holding between 100,000 and 10,000 ETH, known as “sharks,” have continued to increase their holdings, while “whales” holding between 10,000 and 10 million ETH experienced significant drops in holdings following the FTX meltdown in 2022.

According to the data, sharks added 3.61 million ETH worth approximately $6.3 billion over the past year. On the other hand, whales sold 9.43 million ETH worth $16.4 billion over the same period. This indicates a clear divergence in investment strategies between large and smaller investors in the Ethereum market.

Interestingly, the report notes that since last week, while the price of Ethereum has risen, the whales’ holdings have been decreasing even more rapidly as they actively take profits. This trend suggests that larger investors are trying to capitalize on the recent surge in Ethereum’s price by selling their holdings.

Santiment, the on-chain analytics firm responsible for providing the data for this report, suggests that this change in the distribution of holdings has led to an overall shift in the supply distribution in the Ethereum market. Specifically, it is noted that sharks have been buying Ethereum from whales, resulting in a change in the overall supply distribution.

Despite this change, the report notes that whales still hold more than 51% of the total Ethereum supply, while sharks hold less than 29%. This indicates that while there has been a shift in investment strategies among Ethereum investors, larger investors still hold a significant portion of the market share.

Overall, this report sheds light on the changing dynamics of the Ethereum market and how investors with different holdings have responded to market conditions over the past year. As Ethereum continues to rise in popularity and value, it will be interesting to see how these trends evolve and whether larger investors continue to dominate the market or whether smaller investors are able to gain a larger foothold.

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