Why crypto whales are massively increasing their Ethereum holdings

Although the Ethereum (ETH) price is trading at the same levels as three years ago, ETH holdings held by large investors have tripled. Despite the intense volatility in the crypto market, crypto whales seem unfazed by the recent price fluctuations and continue to hold on to their ETH.

Number of Ethereum whales is growing faster and faster. Source: CryptoQuant

This development suggests that crypto whales are increasingly convinced that the price of Ether will rise in the long term. By accumulating large amounts of ETH, these whales are showing that they believe in both the network’s continued improvements and Ethereum’s increasing adoption. Large ETH holdings held by these whales and withdrawn from the regular trading market reduce the available supply. This could have a positive impact on the price of Ethereum if demand remains the same or increases.

Ethereum on exchanges is dwindling faster than Bitcoin

The decline of Ethereum and Bitcoin from centralized trading platforms such as Binance, Coinbase and Bitpanda continues. According to the latest data from Glassnode, the share of ETH held across all exchanges has significantly reduced from over 16 percent in March 2023 to 10.66 percent in May 2024. Bitcoin is showing a similar but less pronounced trend, falling from around 13 percent to 11.85 percent over the same period. On the one hand, this development reflects investors’ growing distrust in the security of centralized exchanges. Many investors prefer to store their cryptocurrencies in more secure hardware wallets and are more likely to hodl their holdings for the long term.

ETH’s steeper decline compared to BTC could indicate that investors continue to increasingly use their Ether in the world of decentralized finance to benefit from lending, staking and other investment opportunities. This trend suggests that investors have a more positive long-term outlook for Ethereum, driven by ETH’s diverse uses.

You can read why the Ethereum price is struggling despite these fundamentally bullish developments and whether an investment in ETH is still worthwhile in our latest edition of the free Ethereum Report.

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