Shift in Ethereum Supply: Over Half of ETH Now Owned by Major Investors

Ethereum (ETH) has witnessed a notable surge in the number of its significant holders, commonly known as whales. Recent data reveals that the proportion of ETH supply controlled by these whales has been steadily increasing, approaching the quantity held by retail investors.

These large holders, which include whales, now possess more than half of the total ETH supply. Insights from IntoTheBlock indicate that Ethereum whales currently hold about 58.37 million ETH, equivalent to over 43% of the overall Ethereum supply. This demonstrates a substantial rise from the 30% they held in the previous year, indicating that large holders have augmented their holdings by more than 10% in the past year.

The data also points out that this accumulation surged notably following the Shanghai upgrade, which enabled Ethereum withdrawals for stakers. The collective supply held by whales is now nearing the 48% held by retail investors, underscoring the rapid catch-up by whales. Moreover, over 52% of Ethereum’s total supply is presently concentrated among large holders, encompassing both whales and institutional addresses.

In early 2023, the accumulation by large Ethereum holders escalated significantly, coinciding with the Shanghai upgrade period. At that time, retail investors held approximately 56% of the total ETH supply. As the holdings of large addresses expanded, the supply held by retail investors gradually dwindled.

Analysis of exchange reserves revealed a continuous decline during this period, indicating that the ETH sold by retail investors and other entities was absorbed by large holders instead of flowing to exchanges. This suggests that whales actively acquired the ETH offloaded by smaller holders, reducing the available supply on exchanges and tightening liquidity.

Furthermore, the percentage of staked ETH has continued to rise, with over 28% of the total Ethereum supply currently staked. This suggests that a substantial portion of the ETH sold by retail and other holders has likely been staked rather than traded on exchanges.

The combination of staked ETH and whale accumulation presents a bullish outlook for Ethereum. A diminishing exchange supply and an increasing staked supply often lead to supply constraints, potentially propelling prices upward in the long run.

As of the latest data, Ethereum (ETH) is trading around $2,340, reflecting a 2.7% upsurge in the recent trading session, marking the third consecutive day of price gains. Despite this positive momentum, Ethereum’s overall trend remains bearish, necessitating further breakthroughs of key resistance levels to sustain a more robust uptrend.