Santiment, an encrypted data platform, shows that large participants are quietly hoarding Ethereum as the price of ETH, the second largest cryptocurrency by market value, has soared.
Santiment data shows that in the past two months, the number of addresses with more than 10,000 ETH has increased, while the number of addresses with less than 10,000 ETH has decreased at the same time.
“As Ethereum exceeded US$750 for the first time in 31 months, we found that 39 Ethereum addresses held 10,000+ ETH compared to 2 months ago. At the same time, the number of addresses holding 1-10,000 ETH is here. Correspondingly reduced over a period of time.”
Source: Santiment
Santiment’s chart also shows that the number of addresses holding 1-100 ETH plummeted on December 19. The cryptocurrency data company pointed out that issues related to decentralized finance (DeFi) may have triggered a sharp decline.
“Since two weeks ago, the sharp decline in this group has also surprised us. Considering how large the decline is, it is likely to be related to DeFi.”
With the sharp decline in the number of small ETH holders, cryptocurrency trader Alex Saunders stated that this signal heralds the future of leading smart contract platforms.
Whales are hoarding Ethereum and retail investors are selling. Although Bitcoin has been hitting record highs, Ethereum has not yet regained its 2018 record peak of $1,432. At the time of writing, Ethereum is trading at approximately $730, which is nearly 50% below the record high three years ago.
This also caught the attention of early Facebook investor Tyler Winklevoss. And compared it with buying BTC at a price of $14,000, which is slightly higher than 50% of Bitcoin’s all-time high.
The price of ETH is now $735. This is 51% of its all-time high price, which is like buying Bitcoin at a discount of $14,000
-Tyler Winklevoss (@tyler) December 31, 2020
