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The 2018 bear market has been a blow to many investors, with bitcoin prices declining 80 percent from its all-time high and most other businesses that have suffered a 90 percent or greater reduction. Prices have fallen so far, and have remained low for so long, that many investors who bought cryptocurrency at the start of 2017 but remain profitable are starting to cash in before these changes. However, at least when it comes to Ethereum, the blockchain data indicate that large holders – colloquially called "whales" – which hindered the crisis have bought the decline, significantly increasing the size of their holdings.
According to a research by Diar, there are currently 500 Ethereum addresses actively negotiated among the major 1,000 addresses. These portfolios have accumulated huge amounts of ether during 2018, increasing their ETH holdings by 80% since January – more than any other period in the history of Ethereum. As of the end of November, these addresses collectively hold 20 million ETHs, worth more than $ 2.2 billion, making up almost 20 percent of ETH's circulating offering.
Diar attributes the growth of whale holdings to investors who are interested in the initial token tokens (ICO), which were among the worst of this year. In addition to the growing pressures from the US Securities and Exchange Commission (SEC) and other regulatory agencies around the world, most of the startups funded by ICO did not meet their roadmaps. Even those who have – like Sirin Labs, creator of the "smartphone blockchain" – often find that their tokens continue to trade at a strict discount compared to their ICO and the initial listing prices of the exchange. In this context, traders who "diversified" their holdings of Ethereum into ERC-20 tokens are starting to reduce their losses and consolidate again in the ETH.
From the report:
"The massive growth in Ether's holdings by active whales could, and most likely, result in traders leaving the token business, most of which has been combined with ETH, which has collapsed from all accounts with respect to the beginning of the year ".
However, the increase in whale holdings is not related to an expansion of the number of addresses that qualify as whales. Since January, the number of active whale addresses has decreased by 30 percent, further concentrating the ETH offer among a smaller group of addresses. That said, the ETH offer is less focused than it was at the start of 2017, when the whales held about 33 million ETHs – more than a third of the total ETH offer to the # 39; era.
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