Ethereum Whale Dominance Reaches New Highs, Raising Questions About Centralization

Ethereum's whale dominance has reached new highs, with 104 wallets containing at least 100,000 ETH, or 57% of the total supply.

Ethereum whales continue to dominate the market, with 104 wallets now holding at least 100,000 ETH. This amounts to 57.35% of the total supply, or approximately $333.1 billion.

The data, highlighted by Santiment, shows that whales are accumulating ETH at a rapid pace. This trend is typically seen as a bullish indicator for the cryptocurrency, as it suggests that large investors are confident in its long-term potential. An increase in key stakeholders’ holdings might serve as a precursor to a sustained upward movement.

This trend is especially relevant for Ethereum, given that the asset is heavily utilized for its expanding staking and DeFi ecosystem. However, the overall distribution of supply presents a contrasting view.

According to Santiment, wallets with 100 to 100,000 ETH currently hold only 33-46% of the supply, the lowest ratio recorded. This group continues to shrink, suggesting that mid-tier investors are either selling their holdings or combining them into larger entities.

🐳 There are currently 104 whale wallets holding at least 100K Ethereum. Their combined holdings currently sit at 57.35% of all existing ETH tokens, currently worth ~$333.1B.

Meanwhile, wallets with 100-100K hold their lowest ratio of supply in history, 33.46%. And sub-100 ETH… pic.twitter.com/9qDN3lotQy

— Santiment (@santimentfeed) December 17, 2024

Furthermore, sub-wallets holding 100 ETH have hit an almost 4-year low of 9.19%. This decline has raised questions about the retail investors’ sentiments, suggesting that they are likely not building as aggressively as whales.

However, the whale accumulation is consistent with Ethereum’s recent price recovery. According to the chart analysis, the altcoin recently climbed above the $4,000 mark, indicating strength. Ethereum liquidity could be reduced drastically if whales control the supply. This scenario could lead to surging prices soon.

As CNF reported, Ethereum’s rise to $4,000 coincides with an Ethereum Exchange-Traded Funds market inflow. CoinShares reported that Ethereum has maintained positive investment flows for seven consecutive weeks, highlighting its growing institutional appeal.