Although the price of Ethereum (ETH) has increased this year. The number of addresses with large amounts of Ether, or Whales, has decreased significantly. So are you could go to Bitcoin?
According to the data provided by the Blockchain research firm Glassnode. It should be noted that the seven-day average of the number of unique addresses with 10,000 ETH, or more, fell to 1,050 on Tuesday. That’s the lowest level since January 2019.
Furthermore, the decrease in the number of Whales addresses of Ether contrasts with the recent increase in the number of Whales addresses of Bitcoin.
Mainly, the seven-day moving average of the number of addresses with 10,000 BTC, or more, increased to 111 in late April, the highest since August 2019.
Ether Whales make big moves
As Santiment specified, there have been several movements of large amounts of money through the Ethereum Blockchain, where the funds have reached different crypto exchanges. For this reason, the data shows that many of these movements come from known directions for the Hodl.
According to what was said by Connor Abendschein, analyst of cryptographic investigation in the data of Digital Assets:
“Some Whales could have moved to BTC in anticipation of possible price appreciation in the top cryptocurrency. Due to the effects of Halving“
Experts weigh in on ETH moves
The bullish hype over Bitcoin’s third Halving, which took place on May 11, was quite strong. Because, bullish expectations were bolstered by Bitcoin’s rapid recovery to $ 7,000 in just five days after it fell on March 12.
That may have caused some Whales to switch to Bitcoin before Halving. So this is further evidenced by the number of BTC addresses that increased 5% in March while the ETH ones were trending down.
DuckDuckGo executive Adam Cochran says that:
“Audited over 10,000 Ethereum addresses to examine ETH Whales activity, profitability, liquidity and market manipulation“
But according to Jason Wu, CEO and co-founder of the Minneapolis-based digital lending and lending platform DeFiner.org, he stated that:
“The divergence could continue to widen, because Bitcoin is primarily used as a storage vehicle of value“
As a result, Whales are more likely to have large amounts of Bitcoin than Ether. Whose main objective is to facilitate and then monetize the work done in Ethereum.
Another possible reason for the decrease in large Ether addresses. For example, it could be the greatest interest of investors in the decentralized finance (DeFi) space.
Ashish Singhal, CEO and co-founder of Crypto Exchange CoinSwitch.co., Adds to the comments, stating that:
“Owners may have moved from various DeFi protocols, a significant amount of their holdings to Smart Contract, to earn more money.”
Small addresses are also growing
The decrease in large directions. It is also in stark contrast to the relentless increase in the number of addresses containing 32 or more coins.
According to Singhal, the seven-day average of the total address containing 32 ETH or more stood at a record 114,625 on Wednesday, a gain of more than 4% this year. “The increase can be attributed to the bullish sentiment surrounding the launch of ETH 2.0“
Is it that these Ether Whales are doing what they can to take advantage of the last two months of bullish market action or have they really gone to Bitcoin?