Is This A Good or Bad for Ethereum?
According to Glassnode the number of Ethereum (ETH) wallets holding over 100 coins has reached a new all-time-high of 52,755. This means that more than 52,755,000 ETH out of a circulating supply of 111,560,005 ETH, nearly half is held by 'whales' or large investors. With Ethereum currently trading at $228 that equates more than $11 Billion.
This could be seen as moderately positive for Ethereum holders as between the 28th to 29th, ETH's price increased slightly. ETH went from $222 to $226 in a 24-hour period. Additionally the number of ETH transactions has also increased and is reaching heights not seen since 2018.
Institutions, ETH 2.0, DeFi, PlusToken, or All of the Above?
It seems that there are many different forces at play here that is influencing the number of Ethereum holders. One of the forces is institutional investment, such as Grayscale. According to a report by Bitcoin.com, Grayscale have purchased 50% of all Ethereum mined in 2020 and hold 1.1% of all ETH in circulation.
Ethereum's anticipated launch of Ethereum 2.0 is also due later this year. We might see it launch towards the end of the Summer and investors may be loading up on ETH before the scheduled release.
There is a reignited interest in many different DeFi tokens in Ethereum's ecosystem. This includes tokens such as Compound (COMP) which offers high yield on investment and DEX's like Kyber (KNC) and Bancor (BNT). As ETH is needed for gas fees, DeFi fans are required to hold some ETH for transactions. While this does up the need to hold Ethereum, 100 ETH might be a bit much for that purpose.
The crypto scam wallet PlusToken also plays a part in the number of large holders. The scam which operated as a simple Ponzi disguised as a cryptowallet was the largest in cryptocurrency history rivaling OneCoin. Over $3 billion was stolen via PlusToken's wallet. As per Decrypt, over 6000 different Ethereum wallets might be holding funds from PlusToken.
It seems to be a mix of all things mentioned that pushed the number of Ethereum 'whales' up. The majority seem to be a positive indicator except PlusToken, if dumped could negatively impact ETH's price.
So far this seems like mostly good news for Ethereum fans and holders.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado