Ethereum whales seem to be preparing for Ethereum 2.0 by accumulating Ether (ETH) in their wallets. This is evident by the fact that the top 100 Ethereum wallets are holding nearly 25 percent of the asset’s current supply. The observation was made by blockchain data analysis firm Santiment, that made a Twitter post regarding this observation.
Ethereum whales preparing for Ethereum 2.0
Santiment stated that the concentration of Ethereum among the top wallets suggests that ETH whales are accumulating. Santiment argued that the large investors collectively believe that the token is currently being undervalued and hence think it is a good time to buy for a “medium to long-term hold play.”
However, at the same time, the company warned that signs of accumulation do not guarantee a spike in the asset’s price across the short term. The company stated that sometimes it takes a bit of time for the price to rise after accumulation rises.
However, this data is not as simple as it seems as the top 100 wallets might not belong to individual investors. Perhaps most wallets in the top 100 represent a plurality of investors similar to many of the top 20 largest wallets that are owned by crypto exchanges.
As per TokenAnalyst data, the wallets of Huobi, Binance, Bitfinex, Poloniex, Okex, Gemini, Kucoin, Bitstamp, Kraken, and Bittrex hold around 18.5 million Ethereum coins in total. This sum represents nearly 17 percent of the Ethereum’s total circulation
The whales might be accumulating Ethereum in hopes that the ‘Ethereum 2.0‘ launch would drive another bull season for the asset.
Featured image by pixabay.
