- The most frequent explanation was that regulators are putting pressure on ETH than BTC.
- A key concern raised by an analyst was whether or not staking was properly accounted for.
This week, the crypto community learned of a striking discrepancy in the attitudes of the “whales” holding the two largest cryptocurrencies on the market: Bitcoin and Ethereum. On-chain research business Glassnode data shows a dramatic decline in the number of Ethereum “whales” (individuals holding 1,000 or more ETH, or around $1.5 million) since 2020, with the sale of $20 million worth of ETH.
However, Bitcoin whales have been steadily building their reserves in stealth. With a handful of abrupt declines, either owing to the FTX crash or profit-taking after a strong 2021 bull run, the number of people who possess 1,000 BTC or more (about $26.9 million) has stayed quite stable over the same period.
Missing Out Key Aspects
Social media was ablaze with speculation as to the cause of the apparent difference in whale behavior, with prominent members of the Bitcoin camp using the opportunity to take aim at their Ethereum community rivals. The most frequent explanation was that regulators are putting more pressure on Ethereum than Bitcoin.
However, both the Glassnode data and the conclusions generated from them seem to be lacking. A key concern raised by an analyst was whether or not the chart properly accounted for staking. He elaborated on the misconception that transfers to a staking contract constitute a sale on chain.
To participate in the Ethereum network’s staking protocol and assist verify transactions on the blockchain, users must now commit 32 ETH to a smart contract. This seems to be what’s behind the supposed decline in institutional ownership.
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