In a recent tweet, data analytics firm Santiment shed light on the growing number of Ethereum sharks and whales in the crypto waters. The company’s analysis revealed a notable surge in addresses holding 1,000 or more ETH, with a staggering increase of 380 compared to last year. This represents a significant rise of 5.7% in the number of these high-volume investors.
Interestingly, this surge in Ethereum’s deep-pocketed individuals comes at a time when the market has experienced a downturn. With prices currently down by 34.8%, the dip has inadvertently provided an opportune moment for accumulation. The lower prices have enticed these larger players to increase their holdings, capitalizing on the market conditions.
Santiment’s findings highlight the resilience and strategic decision-making of these Ethereum stakeholders, who seem to possess a keen sense of market trends.
Ethereum Sees Positive Trends In Q1 2023
In the first quarter of 2023, Ethereum, the world’s second-largest cryptocurrency, achieved significant milestones and witnessed positive developments.
According to a report by Messri on the State of Ethereum, the token successfully completed its transition to Proof-of-Stake (PoS) with the Shapella upgrade, leading to improvements across its ecosystem.
During Q1, Ethereum experienced its second consecutive quarter of negative net issuance, indicating a boost in market sentiment. This upswing in on-chain activity resulted in higher fees and increased burn.
Validators of $ETH witnessed an annualized real yield of around 5.9%, with a slight decrease of 0.4% quarter-on-quarter in nominal yield. However, this decline was partially offset by a net deflation of 0.3%.
Although overall on-chain activity remained steady with an average of 1.1 million daily transactions, there was a decline in decentralized finance (DeFi) activity, offset by an increase in the non-fungible token (NFT) and Bridge activity. This shift can be attributed to the rise in Layer 2 (L2) transactions, accounting for 45% of total transactions, up from 38% in the previous quarter.
Despite a slight 4% decline in the average number of daily active addresses on Ethereum, which can be attributed to Binance consolidating its wallets, the network continued to display resilience and robustness.
Nevertheless, the recent surge in Ethereum whales and sharks, which have increased their holdings amid market downturns, highlights these investors’ strategic decision-making and resilience.
Meanwhile, Ethereum’s successful transition to Proof-of-Stake and positive developments in Q1 2023 demonstrate the cryptocurrency’s promising future, with improvements across its ecosystem and a boost in market sentiment.
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