In a recent tweet by analytics platform IntoTheBlock, it was revealed that Ethereum whales are making quite a splash in the crypto waters! These giant holders of Ethereum have witnessed a significant surge in their holdings, causing quite a stir among the crypto community.
The report indicates that these whales now boast a whopping 30.07 million ETH, which marks a considerable leap from their previous holdings of 26.56 million ETH recorded earlier in 2023.
The surge in Ethereum holdings by these prominent addresses, which command over 0.1% of the total supply, strongly suggests an ongoing accumulation trend. This news has intrigued many analysts and investors, pondering the possible implications for the future of Ethereum and its market dynamics.
However, it remains to be seen how these accumulating Ethereum whales will impact the overall market sentiment and price movements.
Ethereum On Exchanges Reaches Lowest Level
In another related update, Ethereum reserves on exchanges have dropped to its lowest levels since 2016, as more users stake their ETH, according to data from Glassnode.
Currently, only 14.85% of all ETH is held in centralized exchange wallets, a level unseen since the early days of Ethereum. In contrast, during the 2021 bull market, exchange balances were around 25-26%.
Low exchange balances are generally considered bullish as they indicate limited ETH supply available for purchase, thereby driving up prices. The recent surge in the popularity of staking has contributed to the decline in available supply.
The report said that since the Shapella upgrade’s introduction, over 4.4 million additional ETH coins have been staked, with large holders opting for passive income generation rather than selling their assets.
Analysts at Binfinex predict this trend will continue, driven by expected deflationary forces pushing up ETH’s price. Meanwhile, cryptocurrency trading volumes have experienced a significant decline.
Binance, the world’s largest crypto exchange, saw a 48% decrease in spot trading volume for the second consecutive month in April, reflecting an industry-wide decline of 40% due to macroeconomic uncertainties and U.S. bank collapses.
Nevertheless, with notable changes unfolding in the crypto market, including a dwindling supply of ETH for sale and declining trade volumes, industry observers are closely monitoring the potential effects on the overall market and the future price of Ether in the months ahead.
According to the current price analysis of Ethereum, it is trading at $1,833.33, up by about 2.10% in the last 24 hours. However, the weekly chart recorded a slight increase of about 0.48%.
In addition, its trading volume has witnessed a decrease of 10.22%, reaching $5,842,947,055, whereas the market capitalization has increased by 2.16% in the last 24 hours.