Ethereum, the second-largest cryptocurrency by market capitalization, has seen a decrease in the number of whales holding its native token, Ether (ETH). This comes after the recent Shapella incident, where a vulnerability in the Ethereum network was exploited, resulting in the loss of millions of dollars worth of ETH.
The Decrease in Whale Population
According to data from Santiment, a blockchain analytics firm, the number of Ethereum addresses holding at least 10,000 ETH has decreased by 7.5% since the Shapella incident. This represents a loss of approximately 5 million ETH, or $1.5 billion at current market prices.
The decrease in whale population could be attributed to several factors, including the loss of confidence in the Ethereum network’s security and the fear of further exploits. Additionally, some whales may have sold their ETH holdings in response to the incident, further contributing to the decrease in population.
The Potential Impact on ETH Price
The decrease in whale population could potentially have a negative impact on the price of ETH. Whales are known to have a significant influence on the cryptocurrency market, as their large holdings allow them to manipulate prices. With fewer whales holding ETH, there may be less demand for the token, which could lead to a decrease in price.
However, it is important to note that the decrease in whale population may not necessarily result in a significant price drop. The Ethereum network has a large and active community, and there are many factors that can influence the price of ETH, including market sentiment, adoption, and technological advancements.
The decrease in the number of Ethereum whales holding ETH is a concerning development for the cryptocurrency market. While it is unclear how this will impact the price of ETH in the long term, it is important for investors to remain vigilant and stay informed about developments in the Ethereum network. As always, it is recommended to do your own research and invest wisely.