As Ethereum continues to gain popularity and adoption, its dominance in the cryptocurrency market has become more apparent. One way to measure this is by looking at the wallets of the largest holders of Ethereum, also known as “whales.”
What are Whales?
Whales are individuals or entities holding a significant amount of cryptocurrency. In the case of Ethereum, whales have 10,000 ETH or more.
The Rise of Ethereum Whales
According to data from Santiment, the number of Ethereum whales has steadily increased over the past year. As of August 2021, over 1,300 Ethereum addresses held 10,000 ETH or more, compared to just over 1,000 in August 2020.
This increase in the number of Ethereum whales can be attributed to several factors, including the rise in the value of Ethereum and the growth of decentralized finance (DeFi) applications built on the Ethereum network.
The Impact of Whales on the Market
Whales have the potential to influence the price of Ethereum due to their extensive holdings. When whales buy or sell Ethereum, it can cause significant fluctuations in the market.
However, not all whale activity is harmful. Some whales may hold onto their Ethereum for long periods, which can help stabilize the market and prevent extreme volatility.
Tracking Whale Activity
There are several tools available for tracking whale activity in the Ethereum market. One such tool is Etherscan, which allows users to view the largest Ethereum wallets and track their transactions.
Another tool is Whale Alert, which tracks large cryptocurrency transactions across multiple blockchains, including Ethereum. Whale Alert can monitor whale activity in real-time and receive alerts for significant transactions.
The Future of Ethereum Dominance
As Ethereum continues to grow and evolve, its cryptocurrency market dominance will likely increase. The rise of DeFi applications built on the Ethereum network has already contributed to this trend. Future developments, such as the transition to a proof-of-stake consensus mechanism, could further solidify Ethereum’s position as a dominant player in the market. Overall, while whale activity may impact the short-term price of Ethereum, the long-term outlook for the cryptocurrency remains positive.
