The Number of Addresses Holding 1,000 Ether Decreased by Almost 10% Since Late 2018

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Fewer people are intent on holding 1,000 Ether or more in their wallet. Statistics indicate that the number of addresses holding such a balance continues to decline. A two-year low level has been reached, but the numbers are likely to drop even further,

Ether Whales are Seemingly Cashing out

It is not uncommon to see a shift occur among network addresses holding a specific balance. This applies as much to Bitcoin as it does to Ethereum or any other crypto asset. Owning a vast sum of cryptocurrency is always somewhat risky. More specifically, large holders, or “whales”, are often targeted by criminals or people looking to take advantage. 

Judging by the chart below, the number of addresses holding 1,000 Ether or more is on the decline. It is not a new trend, as the peak was reached in late 2018. Ever since, it has been downhill all the way, despite some flare-ups. Owning 1,000 Ether represents a value of over $366,000, a total value that would make a lot of people consider cashing out. Such a sum can change many people’s lives for the better.

BlocDesk 1000 Ether
Source: Glassnode

One has to wonder why people are no longer intent on holding such sums of Ether. The growth of DeFi may be a reason. Diversifying a portfolio is an ongoing process,  as there are many other assets worth exploring. 

At the same time, there is the upcoming launch of Ethereum 2.0. When that change occurs, users need 32 Ether to run a network node for staking rewards.  In theory, this can push more people to own bigger sums of ETH. Especially those with 1,000 Ether or more can set up dozens of nodes and earn passive income. 

An Increase in Active Addresses

Another contributing factor to this trend is how there are more active addresses. An active address is recorded when it acts as either a sender or receiver. It is possible that some whales are shifting balances to different addresses in preparation for Ethereum 2.0. Some may be simply exploring DeFi options, or moving part of their stack to an offline wallet. 

Source: Glassnode

All things considered, these statistics are not necessarily worrisome. Fewer whales will ensure a more equal distribution of Ether altogether. At the same time, one has to wonder if a market dump will occur. 

With so much ETH being “unloaded”, there will always be some concerns in this regard. The 1,000 ETH club has grown a lot more elusive, even though there are still 7,218 addresses with such a balance today. 

The post The Number of Addresses Holding 1,000 Ether Decreased by Almost 10% Since Late 2018 appeared first on BlocDesk.

Source: The Number of Addresses Holding 1,000 Ether Decreased by Almost 10% Since Late 2018

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