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 have distributed tokens equivalent to 1.5% of the supply
As explained by on-chain analytics company Santiment in an X afterSince Christmas, Ethereum addresses holding more than 1,000 ETH have participated in the net sale. The relevance indicator here is the ‘Supply Distribution’, which tells us about the percentage of the total circulating ETH supply that a given portfolio group holds.
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Addresses are placed in these cohorts based on the number of tokens they have on their balance. For example, the 1 to 10 coins group includes all investors who own between 1 and 10 ETH.
Here is the chart for the Ethereum Supply Distribution, shared by Santiment, showing the trend in the indicator for three portfolio ranges: 0 to 1 coins, 1 to 1,000 coins, and 1,000+ coins.
As shown in the chart above, the smallest Ethereum investors, who own less than 1 ETH, have seen their combined supply increase since December. This group now owns more than 2.3% of the cryptocurrency’s supply, an all-time high.
Mid-range wallets holding 1 to 1,000 ETH have experienced a similar trajectory during this period, with their offerings breaking the 23% barrier for the first time since July. The growth of these addresses could be on strike.
While smaller investors have rallied, this does not include the highest end of the market: those with over 1,000 ETH. This range includes cohorts such as the sharks and whales, who are considered key holders of the cryptocurrency due to the remarkable size of their holdings.
Over the past eleven weeks, these large entities have distributed 1.5% of the total ETH supply. This sell-off has left supply below 75%, the lowest in seven months.
Alongside this shark and whale selling phase, Ethereum’s price has fallen sharply, and it is possible that this bearish price action can only continue for the foreseeable future if the distribution continues. It now remains to be seen whether the supply distribution of the more than 1,000 ETH investors will remain in a downward trend in the coming days or whether a reversal will appear.
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One digital asset that has seen the opposite behavior of its top portfolios is Pepe. As highlighted by Santiment in another X afterthe 100 largest memecoin wallets have participated in a remarkable accumulation over the past four months.
In total, these giant wallets purchased 23.02 trillion PEPE during this period. As the analytics company explained:
Retail sentiment is currently very bearish towards Pepe and Meme coins, but expect heavy accumulation coins to inevitably break out again once Bitcoin can see continued bullish momentum.
ETH price
At the time of writing, Ethereum is trading around $1,950, down nearly 14% in the past week.
Featured image of Dall-E, chart from TradingView.com