On-Chain Tracker Notices Major Difference Between Bitcoin And Ethereum Whales
15 Oktober 2023 - 8:00PM
NEWSBTC
As earlier reported, Bitcoin holders have steadily held on to their
coins in the past few months. Bitcoin whales, in particular, seem
to be doubling despite the current uncertainty in Bitcoin’s future
projection. Long-term holders add an average of 50,000 BTC to their
wallets every month, as indicated by the HODLer Net Position Change
indicator provided by Glassnode. Related Reading: Crypto
Analyst: Bitcoin To Surpass Gold And Silver Within A Decade On the
other hand, whales of Ethereum, the second largest crypto in the
world, appear to be on a different trajectory. On-chain data has
shown that while Bitcoin whales hoard their coins, Ethereum whales
appear to be dumping their holdings in recent years. Bitcoin Whales
Buying More, Ethereum Whales Selling Bitcoin whales, meaning the
largest holders with 1000 BTC or greater, have been steadily
accumulating more BTC since 2018, according to data from on-chain
analytics firms. However, there have been sell-offs, either through
extended bear markets or during profit-taking after a strong
bullish uptrend. A research analyst for Cryptoslate named James
Straten posted on social media that Ethereum whales with more than
1,000 ETH have been selling since the same period. While sharing a
Glassnode chart, he shared a correlation between the whales of the
blockchains. On-chain data shows ETH whales have offloaded 20
million ETH since 2022, with 12 million ETH being sold off this
year alone. Possible Explanation For The Contrasting Whale Activity
The story these on-chain metrics tell provides insight into the
prevailing mood among large crypto holders of different
blockchains. Although the amount of ETH held by whales might
indicate they have sold or moved their funds to other
cryptocurrencies, a better possibility is that these whales
transferred their ETH into Ethereum smart contracts. Since Ethereum
version 2.0 kickstarted its journey in December 2020, the number of
tokens in the staking protocol has grown significantly. ETH
2.0 requires validators to stake 32 ETH in its deposit contract to
validate transactions on the Ethereum blockchain. At the moment,
the contract now has 31.2 million ETH worth $48.6 billion locked.
This seems consistent with on-chain data, which shows that the
percentage of supply tied in smart contracts overtook the supply in
addresses holding 1000+ ETH in late 2020. Crypto research
analyst André Dragosch shared this correlation on social media
platform X. The correlation buttresses that the Glassnode data
doesn’t consider the ETH tied in smart contracts for its whale
supply metric. With a domination of 17.8% over the whole
cryptocurrency market, the Ethereum blockchain continues to
solidify its position as the undisputed leader of smart contracts.
Unlike Bitcoin whales, bullish ETH whales are not just HODLing but
employing techniques to maximize their crypto gains. Related
Reading: Bloomberg Analyst Predicts Likelihood Of A Spot Bitcoin
ETF By January 2024 At the time of writing, ETH is trading at
$1,557. However, a recently failed bullish pattern formation could
send the price of ETH falling below $1,000. Cover image from
Unsplash, chart from Tradingview
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