The top 10 addresses control more than 35% of the total ETH supply.
Smaller traders sell amid FUD, while larger players accumulate.
Ethereum (ETH), the world’s second-largest cryptocurrency, has witnessed significant developments within its network. Despite trading around the $1,650 mark, the network’s activity has been capturing attention.
Notably, as the market witnessed a crash, a fascinating trend emerged. While small traders sought to offload their holdings, prominent players in the field were seen accumulating ETH. This accumulation has resulted in an increased concentration of ETH supply, with the top 10 addresses now controlling over 35% of the total supply.
The 10 largest addresses on the #Ethereum network are now holding over 35% of the available supply. By no means does this mean the #2 asset in #crypto is suddenly #centralized, but it shows the capitulation of smaller traders showing #FUD from this dip. https://t.co/G3wIeBzelb pic.twitter.com/TXkKjSwwmn
— Santiment (@santimentfeed) August 25, 2023
On-chain data provider Santiment explains that the heightened concentration of supply does not indicate a shift to centralization. Instead, it highlights how smaller traders have responded to market uncertainty and fear during this period of market dip.
Further analysis of the Ethereum network reveals an uptick in whale transactions over the past three months. Starting from June, more than 1788 wallets holding between 10 and 10,000 ETH have joined the ranks of larger holders. The number of wallets within this range has bounced back to 355,000. Moreover, transactions involving sums exceeding $100,000 have also witnessed a significant surge.
Moreover, despite a major correction witnessed in the preceding week, Ethereum has managed to maintain its position above the $1,650 level.
Will the ETH network’s activity reflect on its trading price and gain momentum? Share your thoughts by tweeting us at @The_NewsCrypto
