Ethereum whales have been increasing their activities on the blockchain as it targets a major level. This time, its recent spike in activity has been in the form of transactions. These whale transactions that carry at least $100,000, so only big holders could be behind the transactions, have been on the rise.
Mostly Ethereum whales increased their activities following the ETH price surge over the past week. The first spike was noted after the crypto broke above $1,900 and since it has continued to hold this level, there has been more consistency among the whales.
in the block data shows that ETH whales have doubled their transaction counts in just a few days. This increase caused its total transactions to go from 2,120 to 3,230 in two days. This increase in the number of transactions translates into an increase of more than 54% in just 48 hours, from July 2 to 4. In a 7-day period, ETH whales have moved almost $20 billion.
ETH whale transactions cross 3,000 in two days | Source: IntoTheBlock
However, while this jump is significant in its own right, it is not unusual for Ethereum to see such a high number of large transactions. For example, towards the end of June, total whale transactions also spiked above the $3,000 level.
Ethereum’s holder base is made up of a large number of whales compared to its largest competitor, Bitcoin. While the latter’s whale holders only make up 11% of the total holder base, Ethereum whale wallets make up 42% of its total wallets, according to data from IntoTheBlock. Therefore, a high volume of large transactions occurring in a short period of time is not out of place.
How Ethereum Whales Can Affect The Price
A large number of whale transactions can have a significant impact on the price of coins like Ethereum, depending on what the holders of these coins intend to do with them. If these transactions carrying at least $100,000 worth of coins are to sell, then the price of ETH would see a downward trend.
However, since the ETH price has been relatively stable and held onto the $1,900 support, it is likely that these whales are just moving their unsold coins around. Also, these on-chain transactions do not point to a good volume of ETH flowing to centralized exchanges, further lending credence to the fact that these whales are not moving their coins around for selling purposes.
Ethereum, on its own, has not been having the best of days, as its trading volume has dropped significantly since Monday. It currently sits at $6 billion, a 27% decrease from Monday’s figures. However, its price is holding steady with a meager gain of 0.1% as the coin is trading at a price of $1963.
ETH price trending at $1,962 | Source: ETHUSD on TradingView.com
Featured Image from iStock, Chart from TradingView.com
