Despite Ethereum's price soaring nearly 50% year-to-date, the number of large-scale investors ("whales") holding significant amounts of ETH has dropped sharply. According to Glassnode, the 7-day average of addresses holding 10,000+ ETH fell to 1,050 on May 12—the lowest level since January 2019.
Key Trends in ETH Whale Activity
- Whale addresses declined by ~6% from December’s peak (1,115 addresses).
- Contrasts with Bitcoin whales, where 10,000+ BTC addresses hit 111 in April—a high since August 2019.
Connor Abendschein, Crypto Analyst at Digital Assets, notes:
"Some ETH whales may be shifting to Bitcoin, anticipating price rallies post-halving."
The Bitcoin halving event (May 11) fueled a bullish trend, with BTC rebounding to $7,000** within days—far above its March 12 low of **$3,867. This likely prompted ETH whales to convert holdings into BTC pre-halving.
Possible Reasons Behind the Decline
Migration to Bitcoin
- BTC’s role as a store of value vs. ETH’s utility in Ethereum-based transactions.
Jason Wu, CEO of DeFiner.org, explains:
"Ethereum’s ecosystem thrives on DeFi and dApps, driving demand for smaller wallets over whale holdings."
Rise of DeFi Investments
- ETH locked in DeFi protocols peaked at 3.23 million in February (now 2.65 million, +28% YoY).
Ashish Singhal of CoinSwitch.co adds:
"Whales may be moving funds into DeFi smart contracts for lending yields."
Growth of Smaller Addresses
- Addresses holding 32+ ETH (required for Ethereum 2.0 staking) hit a record 114,625—up 4% in 2024.
- Note: Multiple addresses can belong to one user.
FAQs
Q: Why are ETH whales decreasing while BTC whales grow?
A: Bitcoin’s post-halving hype and store-of-value appeal may be attracting ETH whales seeking higher returns.
Q: How does DeFi impact ETH whale activity?
A: DeFi protocols incentivize locking ETH in smart contracts, reducing liquid holdings in whale addresses.
Q: What’s the significance of 32+ ETH addresses?
A: Ethereum 2.0’s proof-of-stake model requires validators to stake 32 ETH, driving demand for mid-sized holdings.
👉 Explore Ethereum 2.0 staking opportunities
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Investors should conduct independent research before trading.
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