Ethereum: How Much of the Total Supply is Held by Large Investors?
Currently, there are over 20,000 cryptocurrencies in the market. Crypto has come a long way to this point, and the adoption people were talking about a couple of years ago is already materializing.
Bitcoin (BTC) and Ethereum (ETH) are the biggest digital assets in terms of market capitalization and are considered to influence the overall market direction.
However, there is a significant difference in the distribution of these cryptocurrencies, with Ethereum having a much higher percentage of its supply held by large investors compared to Bitcoin.
According to data from IntoTheBlock, as of February 26, 2023, around 39% of the total supply of Ethereum is held by whales. This starkly contrasts Bitcoin, where large addresses hold only 11% of the total supply.
The concentration of Ethereum whales could have different implications, including a potential indicator of investors’ future price outlook for the asset. Ethereum’s increased development activity, particularly the staking feature following the Merge upgrade, may have contributed to the concentration of large addresses.
READ MORE: Global Crash Incoming – What Could This Mean for Crypto? – Arthur Hayes
Investors are expected to start withdrawing their staked ETH in March after the Shanghai upgrade goes live. While some argue that the concentration of wealth among a few large holders is a natural market outcome, others claim that it goes against the decentralized nature of cryptocurrency and could lead to market manipulation.
Regardless of the various opinions, Ethereum’s supply is significantly more concentrated among large investors than Bitcoin. This could have important implications for the future of the Ethereum ecosystem and its price.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
