Ethereum market: Are whales pessimistic?

Thu 31 Aug 2023 ▪ 3 min of reading ▪ by Luc Jose A.

In a particularly tumultuous crypto environment, there has recently been a rush of Ethereum whales. A trend which, according to recent reports, is not as widespread as we might have thought.

Logo d'Ethereum

In brief

  • Ethereum whales are scaling back their acquisitions, suggesting pessimism;
  • A study by Santiment notes a drop in ETH investments since April 2023.

Declining popularity of Ethereum whales

Not so long ago, there was some evidence of investor interest in Ethereum’s ether (ETH). Some 94 million ETHs were acquired as institutional investors became more interested in the crypto.

This dynamic could have led us to believe that ETH was still attractive, despite the generally lackluster crypto environment. On analysis, this is not entirely true. At least, this is what a recent study by crypto data provider Santiment suggests.

The firm noted a drop in ETH acquisitions for wallets hosting between 10 and 10,000 ETH. This finding is linked to the major holders of this crypto, namely whales and sharks, to a certain extent.

Since April, these investors have reportedly limited their investments in the market’s second-largest crypto after bitcoin. Worse still, many of them have sold off, if not sold off, their assets over the last four months.

This trend is a change in the whales’ attitude to their positioning on ETH. Santiment notes that up until April 2023, investors had been particularly bullish on ETH.

This was reflected in Ethereum’s trading and exchange volumes. Data which, according to the experts, is important when analyzing ETH price dynamics over a period of time.

Oddly enough, explains Santiment, Ethereum trading and exchange volumes have fallen significantly in recent months. Particularly since November of the previous year.

Ethereum whales and sharks have lost assets for four consecutive months according to Santiment

Ethereum ultimately unattractive?

Should we conclude from these analyses that there has been a sustained decline in interest in ETH? Brian Quinlivan, Santiment’s Marketing Director, has some reservations about answering this question.

He believes it is necessary to keep a constant watch on the crypto market to determine the potential implications of investor attitudes. According to Santiment, this is crucial to understanding the effect this development may have on the ETH price.

Given the hyper-changing context of the crypto market, Brian Quinlivan’s opinion is not without relevance. While Grayscale has won its case against the SEC, a whale has just bought itself 10,000 ETH on Uniswap. This for around 17 million USDC. Enough to rekindle investors’ enthusiasm for ether?

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.