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Ethereum whales are exhibiting a pattern of consistent accumulation over the past two weeks. This is a trend reversal going by the past few months, where the price of ETH has been largely affected by whale sell-offs.
Ethereum whales are accumulating
Data from Santiment, a blockchain analytics firm, shows that Ethereum whales have been on an accumulation spree for the past two weeks. The Ethereum whales have broken out of a previous trend of selling off their holdings since the beginning of the year.
Following this increased accumulation, Ethereum whales now hold 12% of the entire supply of the largest altcoin. This is a notable gain as whale ownership 10 days prior was art 11.92%. ETH whales are the wallet addresses holding between 1000 and 10,000 ETH, valued at between $3 million and $30 million at the current prices.
These whale addresses have not been active in accumulating more ETH in recent months. The peak accumulation period for Ethereum whales was in December, when these wallet addresses increased their control of other Ether’s supply.
The accumulation of more tokens by whale addresses is affiliated with rising prices. It depicts that the supply of a certain cryptocurrency has fallen in the market. Sometimes, whale accumulation can result in major price gains. In October last year, the price of Bitcoin broke out to record highs following whale accumulation. At the time, whale activity resulted in a buyout worth around $1.6 billion.
However, the recent whale accumulation has not done much to aid ETH’s price in a recovery. The price of Ether has been down by around 5.4% during the past week, and its price movement is coinciding with that of Bitcoin. At the time of writing, Ether was trading at $2846, according to data from CoinGecko.
Ethereum network witnesses congestion
On Sunday, Yuga labs, the firm behind the Bored Ape Yacht Club (BAYC) NFT, announced the launch of Otherdeed NFTs. The NFTs attracted many users, resulting in major congestions on the Ethereum blockchain. Gas fees spiked to record highs as some users reported failed transactions.
The issue raises questions over the ability of the Ethereum network to support large NFT projects. The high gas fees on the Ethereum network will be addressed with the transition of the Ethereum network from a proof-of-work consensus to a proof-of-stake consensus to allow the network to achieve scalability.
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