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There is no doubt that the 2018 bear market has been difficult, but some cryptocurrency traders have taken advantage of it. The whales that trade actively have accumulated more Ethereum ETH this year that at any other time in its history.
The research unit Blockchain Diar has analyzed more than 5,200 Ethereum addresses to find out that the cryptocurrency whales that trade regularly are sitting for 80% More ETH compared to the beginning of the year.
In fact, these whales now own over 20 million ETHs ($ 2.2 billion), about 20% of the current supply of Ethereum. This represents a four-fold increase of ETH held by the best cryptocurrency since January 2017, when they owned only 5 million ETHs.
The collapse of the token market leads to business exchanges
The analysts of Diar attribute the collapse of the cryptocurrency token markets as the main driving force behind the sudden hoarding of Ethereum.
Since an overwhelming majority of tokens are combined with ETH, it is only logical that the exit from these markets leads to retaining Ethereum.
Another effect is that the Ethereum addresses belonging to the cryptocurrency exchanges have seen an increase in the activities of Ethereum traders in November, in particular in the last two weeks.
In total, traders withdrew around $ 470,000 of ETH from the main stock exchanges last month, while total deposits exceeded ETH 16 million ($ 1.8 billion).
But the "new money" of fresh-faced blockchain investors are not really responsible for the increase in deposits.
Instead, Diar pointed out that now there are 30 percent Less Ethereum whales compared to January. This means that a more concentrated group of cryptocurrency investors holds considerably more ETH than in previous years.
The ETH balances rise, the value goes down
While the ETH whale balances have certainly increased, the total value of these Ethereum accounts has shrunk.
At the beginning of the year, these whales controlled about 11 million ETHs, worth $ 21 billion at the time.
Even if they own 80% more than ETH, the total sum of whale holdings now reaches only $ 2.4 billion – a decline of 89 percent of the total value since the end of January.
More ETH enters the addresses of the whales coming out
Not all bad news. The total net balance of deposits and withdrawals for the main Ethereum addresses is indeed positive for the year.
Analysts at Diar concluded that about $ 1 billion was merged into the Ethereum whale portfolio in 2018 and stayed there, with ETH received from addresses of whales that exceed the ETH issued by them.
In the last two months, the main Ethereum addresses have witnessed 270% to increase in ETH balances compared to the previous quarter. Reportedly, the first time was seen in almost two years.
But again, the company noted that this is not exactly indicative of new money pouring into the markets of Ethereum. Instead, it seems that the funds are really going to the cryptocurrency whales. Typical.
Published 4 December 2018 – 13:10 UTC
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