The year 2018 may not have been a great year for many of the Cryptocurrency traders. However one thing is for certain, the year has led to higher holdings of Cryptocurrencies. Whether it be Bitcoin or Ethereum, both have been seen a rise in holdings, especially from whales.
Whales are defined in Cryptocurrency slogan as investors who own large amounts of cryptocurrency. According to TokenAnalyst, Ethereum holdings among whales have increased steadily throughout the year. The top 500 Ethereum whales hold 20 million Ethereum which is about 20% of the total circulating supply. At the time of writing 20 million Ether is equal to about $2.2 billion as each ETH is valued at $108.06.
When comparing the difference in holdings, it is noticed that whales have increased buying Ethereum by 80% since the beginning of the year. When examining the trends, most of the Ethereum was purchased during the ICO boom at the beginning of the year. The purchases of Ethereum has started falling with many of the ICO’s exit as the year progressed.
It’s not just Ethereum, but Bitcoin’s whales too that have been active during 2018. Grayscale which is a digital currency asset manager, for example, has continued to add to their Bitcoin position. Even though Bitcoin prices have not been as exciting! Grayscale holds over 203,000 Bitcoin is more than 1% of the circulating supply of Bitcoin.
The first thing that comes in mind when thinking of Bitcoin whales is ‘manipulation’ and ‘dumping’ especially at times of the bear market. However according to a study by Chainalysis in October, the top 32 whales control 6% of the Bitcoin supply; however, 4.6% is owned by whales who are inactive. The remaining 1.4% is by active whales who behave in ways to support the long-term value and not dump when they want to.
However, Ethereum whales, on the other hand, could cause a bit of problem due to ICO’s exit. With the top 500 Ethereum whales holding 20% of Ethereum, it could lead to market manipulation for the third-ranked Cryptocurrency.
Image Source – Pixabay
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