According to on-chain data, Ethereum’s largest holders have been consistently selling approximately 12 million units of the cryptocurrency over the past year, and there are no indications of this trend slowing down.
Since 2020, the holdings of Ethereum whales have been on a continuous downward trajectory, in stark contrast to Bitcoin whales. Analyst James V. Straten, in a recent post on X, discussed the differing behaviors of Bitcoin and Ethereum whales. The graph he shared illustrates the historical trends in the holdings of these significant investors in both assets.
To define a “whale,” the analyst established a threshold of 1,000 tokens for both assets. The graph shows that Bitcoin whales have generally increased their holdings over the asset’s history, with occasional deviations such as during the 2021 bull market, when they engaged in profit-taking. These deviations were short-lived, and the whales resumed accumulating.
One notable deviation that has not yet fully reversed is the drawdown observed during the FTX collapse in November 2022. Nonetheless, the whales have been accumulating since the beginning of the year, although more is needed to recover from the earlier decline. In contrast, Bitcoin whales have seen their holdings remain relatively stable in recent years.
Ethereum whales, on the other hand, have been actively selling their holdings since 2020. They have shed a total of 20 million ETH, equivalent to approximately $31.6 billion at the current exchange rate. In the past year alone, they have sold around 12 million ETH, which is a remarkable figure amounting to $18.9 billion.
The graph highlights a brief phase of accumulation by Ethereum whales during the bear market lows, but this accumulation was swiftly reversed as the indicator resumed a sharp decline.
It’s important to note that the size of whales varies significantly between the two assets due to differences in coin prices. Based on the established threshold, Bitcoin whales would hold at least $27.4 million worth of the asset, while Ethereum whales hold only $1.58 million.
A fairer comparison can be made by examining the holdings of Ethereum entities of comparable size to Bitcoin whales. As shown in the chart below, Ethereum whales with holdings ranging from 10,000 to 100,000 ETH (equivalent to $15.8 million to $158 million) have displayed accumulation over the years. However, even this cohort has sold substantial amounts this year.
Interestingly, the mega whales on the Ethereum network (holding $158 million or more) have exhibited behavior more in line with the aggregate group of 1,000+ ETH holders, as they have been actively distributing their holdings since 2020.
In terms of whale holdings, Ethereum’s outlook appears concerning, as these significant investors show no signs of a turnaround and lack interest in accumulating the asset. This stands in contrast to Bitcoin whales, who have been engaged in net buying activities this year. Ethereum has recently experienced a decline, with its price retesting lows last seen in August.