On-chain data shows Ethereum wallets with more than 1,000 ETH have reduced their holdings in the past eleven weeks, shedding 1.5% of the ETH supply.
Ethereum Whales Distribute Tokens Equivalent to 1.5% of Supply
As described by on-chain analytics company Santiment in an X post, Ethereum addresses with more than 1,000 ETH have participated in net sales since Christmas. The relevance indicator here is “Supply Distribution,” which tells us about the percentage of the total circulating ETH supply that a given group of funds holds.
Related Reading
Addresses are placed in these pools based on the number of tokens they hold in their balance. The group of 1 to 10 coins, for example, includes all investors between 1 and 10 ETH.
Now, here is the Ethereum Supply Distribution chart shared by Santiment showing the index of three wallet categories: 0 to 1 coins, 1 to 1,000 coins, and 1,000+ coins.
As shown in the graph above, small Ethereum investors, traders holding less than 1 ETH, have seen their collective supply increase since December. This group now owns more than 2.3% of the cryptocurrency supply, the highest level ever.
Middle-tier wallets with 1 to 1,000 ETH have seen a similar trajectory this time, with their supply breaking the 23% mark for the first time since July. Growth in these addresses may depend on factors.
While small investors have been accumulating, the same has not been true at the lower end of the market: those with more than 1,000 ETH. This range includes groups such as sharks and whales, which are considered major cryptocurrency holders due to the significant size of their holdings.
Over the past eleven weeks, these major organizations have distributed 1.5% of the total ETH supply. This selloff took its supply below the 75% level, the lowest in seven months.
Next to this phase of selling sharks and whales, the price of Ethereum has fallen, and it is possible that this bearish price action can only continue in the near future if the distribution ends. Now it remains to be seen if the Supply Distribution of 1,000+ ETH investors will remain in a downtrend in the coming days or if a reversal will appear.
Related Reading
A digital asset that has seen the opposite behavior from its top wallets is Pepe. As highlighted by Santiment in another X post, the 100 largest memecoin wallets have participated in a significant rally over the past four months.
In total, these ridiculous funds bought 23.02 trillion of PEPE during this period. As the analytics firm explained:
The selling sentiment is very low right now for Pepe and meme coins, but expect the most stacked coins to have another exit once Bitcoin is able to see some sustained momentum.
Trading currency of ETH
At the time of writing, Ethereum is trading around $1,950, down about 14% from last week.
Featured image from Dall-E, chart from TradingView.com
