whales and sharks are dumping as the price of Ethereum continues to drop


According to Santiment statistics, Ethereum (ETH) shark and whale address holdings have declined by more than 3 million ETH over the last five weeks, indicating that the largest holders are selling.

According to the blockchain analytics firm, sharks and whales have dumped Ethereum worth $4.2 billion. Throughout the era, dumping has influenced the value of ETH relative to Bitcoin.

Before the dumping began, ETH whales and sharks gathered 2,2 million ETH, resulting in a 43.3% rise in the ETH/BTC ratio. However, since the big sales started five weeks ago, the ETH/BTC ratio has decreased by 12.7%.

A CryptoQuant analyst claimed earlier in the month that whales were influencing the market. According to the expert, ETH whales sent their holdings to exchanges in order to increase the price of ETH and sell it at a premium.

Nevertheless, whatever price manipulation may have occurred is manifestly insufficient to impact the long-term market. It looked like the present selling activity of whales and sharks prevented the asset from appreciating.

Ethereum has turned deflationary for the first time since it completed its transition to a proof-of-stake network, according to statistics from ultrasound.money.

The deflation may have been caused by the debut of a new cryptocurrency project, XEN cryptocurrency, which needed minting and momentarily boosted network traffic. According to the statistics, XEN Crypto alone has burnt 3,527 ETH, which is more than twice as much as the top DeFi protocol, Uniswap.

Since the Merge, 6,850 ETH have entered the market, as of press time. If the asset still used a proof-of-work consensus process, it would have contributed more than 370,000 ETH.

Also Read: Bitcoin Struggles To Surpass $19,500 As A New Development Emerges

Leave A Reply

Your email address will not be published.