Recently, the number of Ether whales has decreased, while the number of Bitcoin whales has increased. There is a consistent growth in small ETH wallets.
According to data compiled by CoinDesk from Glassnode, which provides data on crypto markets, the 7-day average of the number of wallets with a minimum of 10 thousand ETH fell to 1050 as of Tuesday. This is the lowest level seen since January 2019.
Whale addresses have been in a steady decline since the local summit last December. Glassnode had determined the number of wallets held by ETH on 11 December 2019 as 1115.
Bitcoin whales multiplied as Ether whales declined
Interestingly, the number of Ether whales dropped, while the number of Bitcoin whales increased. The 7-day average of the amount of wallets held for 10 thousand or more BTC has increased to 111 as of the end of April. This is the highest figure seen since August 2019.
“Some ETH whales may have switched to Bitcoin due to the potential impact on the price side of the mining reward halving,” said Connor Abendschein, crypto research analyst at Digital Assets Data. commented. The prospect of major ETH holders switching from Ether to Bitcoin before the split is strengthened by a 5 percent growth in major BTC addresses in March.
According to CEO and co-founder of US-based digital lending and borrowing platform DeFiner.org, Jason Wu, decomposition may continue as Bitcoin is essentially used as a value store.
On the other hand, another possible reason for the drop in addresses holding a large number of ETHs is considered to be the increase of investor interest in decentralized finance (DeFi). “Address holders may have moved the ETHs they hold to the smart contracts of various DeFi protocols to earn more money,” said Ashish Singhal, CEO and co-founder of CoinSwitch.co, the crypto trading platform. made the evaluation.
The number of ETHs locked in DeFi protocols climbed to 3.23 million in February, a record high. This number stands at 2.65 million at the minutes of the news. On the other hand, there is a 28 percent growth compared to last year. With 213 DeFi projects created on Ethereum, 199, Ethereum has a good command of this area.
Steady increase in small addresses
Meanwhile, there is a steady increase in the number of addresses holding 32 or more ETH, while the number of addresses holding ETH is largely decreasing. The 7-day average of addresses holding 32 ETH and more is 114,625 as of Wednesday. These addresses grew more than 4 percent this year. “This increase can be attributed to the sense of uptrend associated with the release of ETH 2.0.” said.
As it is known, at least 32 ETHs are required to be a validator in the new version of Ethereum called ETH 2.0.