On-chain data shows that whale activity on the Ethereum blockchain has been extremely high recently due to the excitement around exchange-traded funds (ETFs).
Ethereum whales show much higher activity than Bitcoin whales
According to data from blockchain analytics firm saintEthereum whales have been showing a lot of activity lately. The relevant metric here is “whale transaction count,” which tracks the total amount of transactions that occur on any given network with a value of at least $100,000.
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Transfers exceeding this amount are usually associated with whales, so the value of this indicator can provide insight into the activity of these giant investors.
When the metric value is high, the blockchain is currently monitoring many large transactions. This trend indicates that whales have an active interest in trading the asset.
On the other hand, a low indicator indicates that whales may not be paying much attention to the cryptocurrency because they do not make many transfers.
Now, here is a chart showing the trend in the number of whale transactions for the top three coins in the sector, Bitcoin (BTC), Ethereum (ETH), and Tether (USDT), since the beginning of the year:
As you can see in the chart above, the number of whale transactions on Ethereum has been the highest among these three assets recently. More specifically, Ethereum has seen 77,200 whale transactions since the 17th of this month, which is significantly higher than the 47,000 transactions for Bitcoin or the 34,100 transactions for Litecoin.
The spike in asset activity is likely to be driven by the hype around spot ETFs, which have finally launched after much anticipation, after receiving approval from the US Securities and Exchange Commission (SEC).
The number of whale transactions suggests that whales began to reposition themselves prior to this launch. However, it is difficult to determine exactly what type of activity these large holders were involved in based on this indicator alone.
Since the event was considered bullish, it makes sense for whales to buy. Data from Market Intelligence Platform In the mass She confirmed that major landowners have recently increased their supplies.
IntoTheBlock defines “large holders” as investors who own at least 0.1% of the total Ethereum supply in circulation. From the chart, it is clear that net inflows to wallets in this group have remained positive over the past week, which coincides with the period when whales have been active.
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Just yesterday, large Ethereum holders bought 112,900 ETH, which is equivalent to about $391 million at the current exchange rate. “This accumulation significantly exceeds the $106 million net inflows to the fund,” the analytics firm notes.
Ethereum price
At the time of writing, Ethereum is trading at around $3,460, unchanged from last week.
Featured image by Dall-E, IntoTheBlock.com, chart by TradingView.com