On-chain data shows that Ethereum wallets holding more than 1,000 ETH have reduced their holdings over the past eleven weeks, losing 1.5% of the ETH supply.
Ethereum whales distributed tokens equivalent to 1.5% of the supply
As on-chain analytics firm Santiment explains in an article The relevant metric here is “supply distribution,” which tells us what percentage of the total circulating ETH supply is held by a given wallet group.
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Addresses are placed into these cohorts based on the number of tokens they have in their balance. The coin group 1-10, for example, includes all investors owning between 1 and 10 ETH.
Now here is the Ethereum supply distribution chart shared by Santiment which shows the trend of the indicator for three wallet ranges: 0 to 1 coins, 1 to 1000 coins and 1000+ coins.
As the chart above shows, the smallest of Ethereum investors, holding less than 1 ETH, have seen their combined supply increase since December. This group now holds more than 2.3% of the cryptocurrency supply, the highest level ever recorded.
Mid-tier wallets comprising 1-1,000 ETH saw a similar trajectory during this period, with their supply surpassing the 23% mark for the first time since July. The growth of these addresses could lie in staking.
While small investors are accumulating, the same is not true for the highest segment of the market: those who own more than 1,000 ETH. This range includes cohorts like sharks and whales, who are considered major cryptocurrency holders due to the notable size of their holdings.
Over the past eleven weeks, these large entities have distributed 1.5% of the total ETH supply. This liquidation brought their offer below the level of 75%, the lowest in seven months.
Along with this shark and whale selling phase, the price of Ethereum has fallen, and it is possible that this bearish price action will only continue in the near future if the distribution maintains. It now remains to be seen whether the supply distribution of the 1,000+ ETH investors will remain in a downward trend in the coming days or whether a reversal will appear.
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Pepe is a digital asset that has experienced opposite behavior from its top wallets. As Santiment points out in another X article, the 100 largest memecoin wallets have participated in a notable accumulation over the past four months.
In total, these huge wallets purchased 23.02 trillion PEPE during this period. As the analytics company explains:
Retail sentiment is currently very bearish towards Pepe and Meme coins, but expect the high accumulation coins to inevitably see another breakout once Bitcoin is able to see sustained bullish momentum.
ETH Price
At the time of writing, Ethereum is trading around $1,950, down almost 14% from last week.
Featured image of Dall-E, chart from TradingView.com
