The bear market of the year 2018 has been agonizing for many investors so far. Bitcoin's share price fell 80 percent from its all-time high. Most other cryptocurrencies have lost 90 percent or more. The prices have dropped so low and so long in the basement that even investors from the beginning of 2017 sell their holdings. With regard to Ethereum (ETH), however, a different picture emerges. The Blockchain data shows that at least some big investors – known in the crypto field as “whales” – have held their own ethos and expanded their positions.
According to the survey data of the newsletter service Diar, about 500 of the 1,000 largest Ethereum addresses are active. These wallets have amassed huge amounts of Ethereum since January 2018. They have grown by up to 80 percent. This is stronger growth than ever in the history of Ethereum. At the end of November, these addresses combined about 20 million Ethereum. This amount equates to $ 2.2 billion and includes nearly 20 percent of Ethereum's total circulating volume.
The increase in whale holdings may be due to 2017 Initial Coin Offerings (ICOs). The tokens from this type of financing have had particularly poor results this year, so investors are shying away. Most of the start-up companies that have funded Initial Coin Offerings have been unable to meet their roadmaps. Add to this the growing pressure from the US Securities and Exchange Commission and other regulators around the world.
But also the tokens of successful start-ups are traded at substantial discounts against the list price. These include the tokens from Sirin Labs, who invented the Blockchain Smartphone. Not surprisingly, traders who diversified their holdings of Ethereum into ERC-20 tokens limit their losses and return to Ethereum.
The Diar report says:
“The massive growth of held stocks of ether [Ethereum] by active whales is probably due to traders repelling tokens paired with Ethereum. These crashed in every respect compared to the beginning of the year. “
Interestingly, the growth of whale ethere positions has not resulted in an increase in the number of addresses that can be assigned to whales. Rather, since January, the number of these addresses has fallen by 30 percent. Thus, the held Ethereum spread over a smaller group of addresses. Nevertheless, the total amount of Ethereum is less concentrated than it was in early 2017. At that time, the whales held 33 million Ethereum, which was more than a third of the Ethereum Coins available at that time.
Sources: The Block, Diar, ICOmarks, Pixabay
Author: Peter Joost – Source Post: https://www.kryptovergleich.org/kryptowale-haben-ihren-ethereum-bestand-in-2018-fast-verdoppelt/
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