Ethereum Price Surges Nearly 50% in 2024—Why Are "Whale" Addresses Declining?

·

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

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

  1. 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."
  2. 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."
  3. 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.


### SEO Keywords  
1. Ethereum price  
2. ETH whales  
3. Bitcoin halving  
4. DeFi investments  
5. Ethereum 2.0 staking  
6. Crypto whale trends  
7. Glassnode data