According to the reports, almost thirty percent (30%) of Ethereum’s market is centralized by these whales and over twenty percent (20%) of Bitcoin.
Crypto space’s main reason for being relevant is the fact that it is decentralized, unlike other financial systems. Although every cryptocurrency is recent decentralized news suggests that most of the Bitcoin and Ethereum market is now somewhat centralized.
The report reveals that only three hundred and seventy-six people (376) are in possession of approximately thirty percent (3%) of the Ethereum.
The market is being controlled by big money players that control the crypto market from their influence. These big money players are dubbed as the crypto whales.
Along with this discovery, it was found that these whales did not impact Ethereum’s price on the market. The whales are involved in only seven percent (7%) of the total transactional activity.
Previously in 2016, the whales control almost forty-seven percent (47%) of the ethereum market, but thankfully the percentage has dropped down.
Even though the whales are controlling some of the ethereum markets, they are not contributing to transaction volume. This is because most of the whales do not trade actively and are hodl-ers.
If we analyze Ethereum’s price charts, we notice that it always follows Bitcoin’s footsteps. Meaning that if bitcoin demonstrates a one percent increase, then ethereum is bound to show a one percent increase as well.
Whales do not impact Ethereum’s prices when they are receiving or trading funds with crypto exchanges. Similarly, Ethereum’s intraday volatility is not impacted by the whales.
However, Whales do affect Ethereum’s price volatility. Kim Grauer is an important figure in the crypto community and is a senior economist at Chainalysis who revealed in a statement that Chainalysis is eager to integrate the concepts of the stock market into the crypto space.
Etherum is currently trading at two hundred and sixty dollars ($260.24) and holding strong to get into bulls.