Why Ethereum Whales Selling Their Holdings?

Blockchain analytics company Santiment released data on Sunday showing that large Ethereum investors are actively dropping their holdings and have already sold over $4.2 billion worth of the coins in the last five weeks.

According to the data, Ethereum (ETH) shark and whale address holdings have reduced by more than 3 million ETHs in the last five weeks. In other words, the count of Ether addresses holding 100 to 1 million ETHs has dumped $4.2 billion worth of Ethereum during the same period of time.  

Dumping has played a role in influencing a significant drop in the value of ETH by around 25% since the middle of September.

The data indicates that Ethereum whales have maintained redistribution of their holdings on the market since the successful Merge update. This might have been the key reason for the intense selling pressure that drove the value of ETH to the level it reached currently.

However, since whales and sharks now own fewer coins than they did before, they will most likely push the price of the asset higher in the coming days. Normally, large investors tend to buy back the assets they have sold in the past.

The flow of crypto onto exchanges typically reflects bearish sentiment and is often done by traders to take a profit by selling their tokens, indicating that whales expect the prices to drop further in the near future.

Thanks to the Merge upgrade, the supply of Ethereum is now deflationary, but prices are still struggling, according to data from Ultrasound.Money. Since on October 11 last week, ETH’s supply has dropped by over 4,000 tokens, but there is still no corresponding price boost. Despite a lowered supply, Ether’s price has dropped around 25% in the month since the Merge. At the time of writing, Ether’s price was trading at $1,284.41.

Last Friday, Ethereum co-founder and ConsenSys CEO Joe Lubin explained that after the Merge, Ether price action was a kind of sell activity along with some Ethereum miners “unloading their ether inventory as they shut down their rigs” after Ethereum blockchain migrated to proof of stake mechanism. The executive further pointed fingers at inflation and other macroeconomic events for the continued drop of ETH price along with Bitcoin and the rest of the crypto market.

Image source: Shutterstock


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Is Ethereum Getting Ready for a New Bull Run?

Ethereum (ETH) continues to enjoy a bullish momentum above the psychological price of $3,000. 

The second-largest cryptocurrency based on market capitalisation was up by 0.36% in the last 24 hours to hit $3,102 during intraday trading, according to CoinMarketCap

Based on the surge in the number of Ethereum whales holding more than 10,000 ETH, Market analyst Ali Martinez believes this might trigger a new bull run. Martinez explained:

“Ethereum price is correlated with the number of whales with over 10K ETH. When whales began accumulating in Sept 2020, ETH rose by 1,300%. When they started offloading in May 2021, ETH fell by 62%. 60 whales have joined the network since Feb 2022, signaling the start of a new bull run.”


Source: Alicharts

Ethereum set an all-time high (ATH) price of $4,850 in November last year as institutional investments took centre stage. Nevertheless, it has not been able to reclaim this level ever since. 

Meanwhile, ETH has been experiencing an upward momentum for the past few days, making profit-taking transactions surpass those in a loss. Crypto insight provider Santiment stated:

“There are currently 3.05x more transactions being taken in profit on the Ethereum network compared to transactions taken at a loss. If this ratio holds, it would be the highest relative profit-taking day since Oct. 20, exactly six months ago.”


Source: Santiment

Furthermore, investors are showing bullish sentiment because the number of ETH on exchanges hit a 4-year low. The amount of Ethereum supply in centralised exchanges stands at 17.33%.

eth balance on exchanges

Source: Glassnode

Coins leaving exchanges show a hodling culture because they are transferred to digital wallets and cold storage. It is a bullish trend because it reduces selling pressure. 

On the other hand, Ethereum lead developer Tim Beiko recently revealed that the much-anticipated merge would not happen in June as planned. The merge will facilitate the transition of the Ethereum network from a proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS) framework. 

Image source: Shutterstock


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Bitcoin Whales Wreck Bears, This Is What Happened Last Time They Were Active

Bitcoin whales have become active once again. While whale activity is normal and to be expected, the rate at which they purchase and accumulate coins can point to further movement in the market. Given that these investors control a large enough volume to affect the price of bitcoin, watching their every move can be beneficial as shown bypass data.

When whales begin moving BTC in large volumes, it can either signal a market dump or pump. In the same vein, it can also who how big money is dealing with the digital asset. These addresses which hold 1,000 or more bitcoin on their balance have significantly impacted the market movement with their accumulation trend in the past. Now, again, they have begun to accumulate.

Bitcoin Whales Are Stocking Up

Santiment has reported that the bitcoin mega whales are coming out of their shells to stock up on more of the asset. These whales who hold at least 1,000 BTC on their balances have taken purchasing bitcoin at a rapid rate. Over the span of 7 days, these wallets have stocked up on more than 220K BTC, almost $10 bitcoin worth of the digital asset.

Related Reading | Bitcoin Settles Above $43,000, But What Does The 4-Year Cycle Say?

This comes at a time when the price of bitcoin had dipped and the market had plunged into extreme fear. This meant that a lot of investors were wary of putting money into the market. But not these whales it seems. In one of the most rapid accumulation trends, these whales have now added a combined 1.06% of BTC’s total supply in a little over a month.

Santiment notes that the last time a rapid accumulation trend like this was recorded was two years ago in December of 2019.

What Happened The Last Time Whales Accumulated?

As with any historical data, the accumulation of bitcoin by these whales has often had a profound impact on the market. Buying such a large amount of BTC in such a short period of time will no doubt have effects on the supply of the digital asset and by extension, the value of the asset.

Related Reading | XRP Price Surges – Is Ripple Winning The Fight Against SEC?

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As noted in the report by Santiment, bitcoin whales had done the same thing back on December 23rd, 2019. Now, this was a pivotal time for the subsequent bull rally as it had begun in the next year. A significant uptick was noted in the value of the asset following the rapid accumulation by whales. This had seen an uptrend that continued until the market entered a full-blown bull rally.

Bitcoin price chart from TradingView.com

Whales accumulate BTC before 2020 rally | Source: BTCUSD on TradingView.com

This is not to say that a bull rally is expected to immediately follow such an accumulation trend. However, it shows a strong correlation that a trend like this where supply is reduced helps to signal subsequent growth for an asset.

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Combined with market sentiment moving out of fear territory into the positive, indicators point towards a continued uptrend. Although only a break above $46,000 would signal that the bull has effectively been triggered.

Featured image from Bitcoin News, chart from TradingView.com


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Ethereum Whales Accumulating Polygon (MATIC), Loopring (LRC) and Two Low-Cap Altcoins, According to WhaleStats

Deep-pocketed crypto investors are snapping up Ethereum scaling solution Polygon (MATIC), Loopring (LRC) and two other small-cap altcoins amid the rebound across the digital asset market.

New data from WhaleStats shows that Polygon has replaced LINK as the number one traded token among the richest Ethereum holders in the last 24 hours as MATIC enjoys healthy price rallies.

Ethereum whales were spotted on Friday buying up MATIC periodically in million-dollar purchases. One Ethereum whale, ranked as the fourth biggest in existence, bought 2,838,000 MATIC for approximately $4.73 million. In another transaction, one whale bought $2 million worth of MATIC tokens. A third whale purchased $1.5 million worth of MATIC in a separate transaction.

Looking at the list of the top tokens that Ethereum whales have bought the most in the last seven days, MATIC sits at number five with an average purchase amount of $41,220.

Ethereum whales are also going after Loopring (LRC) with an average purchase amount of $7,865 to take the seventh spot. Loopring is an Ethereum token that aims to allow anyone to build non-custodial, order book-based exchanges on the Ethereum network using zero-knowledge (ZK) proofs.

Render Token (RNDR) comes in at number eight with an average purchase amount of $7,197. RNDR aims to allow anyone with a modern GPU to contribute their rendering power in exchange for tokens, in turn increasing the scale and availability of GPU compute for artists, designers and researchers.

Grabbing the ninth spot is Sushi (SUSHI), the native asset of decentralized exchange SushiSwap. On average, ETH whales purchased $6,735 worth of SUSHI in the last seven days.

Other coins on the list include Ethereum itself and a number of stablecoins.

Source: WhaleStats

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Bitcoin whales buy at $38K as BTC supply per whale hits 10-year high

Bitcoin (BTC) jumping to $39,000 has already activated large-volume investors this week, the latest data shows.

Analyzing whale behavior, on-chain monitoring resource Whalemap revealed accumulation underway at levels above $36,000.

This week’s BTC price “triggered” whales

Identifying clusters of whale bids, Whalemap uncovered what appears to be renewed market confidence among those with some of the largest BTC balances — between 100 BTC and 10,000 BTC.

“Recent prices triggered whales to accumulate Bitcoin,” researchers summarized on Twitter Tuesday.

According to cluster data, whales now own 330,000 BTC bought at spot prices between $36,000 and $38,000.

Whale wallet accumulation annotated chart. Source: Whalemap/ Twitter

Overall, the portion of the BTC supply per whale wallet is now at its highest in a decade, data from on-chain analytics firm Glassnode uploaded to Twitter by popular account Priced in Bitcoin shows.

This comes despite the vastly larger Bitcoin user base compared to the largest cryptocurrency’s early days. 

Bitcoin supply per whale vs. BTC/USD chart. Source: Priced in Bitcoin/ Twitter

Trader and analyst William Clemente meanwhile described last week’s whale activity as “fairly heavy” buying.

Exchanges see new influx of BTC this weekend

The results run in contrast to a decreasing buying trend which began in the second half of January.

Related: Bitcoin market cap dominance hits 2-month high as altcoins struggle

As Cointelegraph reported, exchanges returned to seeing greater outflows than inflows in recent weeks, despite spot price action putting in lower lows.

In the past few days, however, exchange users have conversely sent BTC to their accounts as BTC/USD has risen to its highest levels in two weeks.

The 21 platforms monitored by on-chain analytics firm CryptoQuant saw their balance increase from 2.357 million BTC on Jan. 29 to 2.377 million BTC on Jan 31, the latest date for which data is currently available.

Bitcoin exchange reserves vs. BTC/USD chart. Source: CryptoQuant

Whales may not actively use exchanges for larger buys, particularly if they are in a position to perform over-the-counter trades or purchase coins directly from miners.