Ethereum price of Ethereum has recently fallen below the $2,000 mark in recent days. While some people may see this as something to be worried about, others see it as an opportunity to buy as many coins as possible. More specifically, whales see this as a big buying opportunity for them and they’re using this dip to fill up on their Ethereum holdings.
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Data on Santiment shows that the top 10 addresses have upped their holdings by 2% in the past month, leading them to own 20.58% of all currency ETH supply in this market. This number puts each address at approximately two million ETH coins each if divided equally amongst the 10 top wallets.
Ethereum Whales Now Slowing Down
The Santiment data shows the buying pattern of the ETH whales over the past couple of months. It shows the buying and selling patterns, and how much the wallets have accumulated so far.
The data shows that the whales had sold off coins when Ethereum had hit its all-time high back in May. The coin had skyrocketed above $4,000 at this point and it shows that the wallets had taken profits from the coins they held, which at this point had accounted for about 18% of all Ethereum in circulation.
Bulls struggle to keep ETH price about $2,000 | Source: ETHUSD on TradingView.com
Following the price crash and corrections over the past two months, the top 10 ETH wallets have resumed the accumulation of ETH into their wallets. So far, the wallets have managed to buy over 2% of the current circulating supply of ETH, making them collectively the owners of over 20 million Ethereum coins so far.
ETH Exchange Reserves Plummet Amidst Accumulations
Reports coming out earlier this month show that the exchange reserves of Ethereum had hit new lows in a one-year period. Exchanges lost over five million ETH, down from 26 million by June 2020 to 21 million by June 2021.
As more and more whales and investors accumulate coins in wait for the next bull rally, this number would probably continue to decline. The number and rate at which investors are holding coins are up much higher and more and more people are choosing self-storage options over leaving their coins in the exchanges.
Instances of hacks on exchanges have shown over and over again that coins left on exchanges are not safe and thus, holders are not moving Ethereum bought on exchanges to wallets which they control the private keys and seed phrases too.
Staking is another reason for the plummet. More and more holders are putting their coins up for staking to become validators in the ETH2.0 proof of stake network and as such, leaving the coins on an exchange is less enticing since holders can get rewards for staking their Ethereum on the network.
Featured image from Coingape, chart from TradingView.com
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Author: Best Owie