However, despite controlling a major portion of Ethereum’ circulating supply, the study found these “whales” are liable for just 7% of all the transaction activity.
Chainalysis revealed that whereas these people don’t essentially have a meaningful impact on ETH’s worth, they do contribute to promote volatility when major sell-offs are made.
These figures might be seen as an improvement compared with 2016, once whales owned about 47% of ETH’s circulating supply.
As per the team’s report, around 60% of whales hold their assets and don’t often trade with exchanges.
Recent analysis of activity from 2016 to 2019 additionally disclosed that Ethereum price worth tend to follow movements in Bitcoin [BTC].
Explaining further, Researchers added:
“On an avg., about 1% hike within Bitcoin [BTC] prices yesterday proportionally lead to a 1.1% increase in the prices of Ethereum Today. “
Overall, the ‘blockchain‘ analytics company believes that issues regarding this impact of whales on market prices might have been exaggerated, but added:
“We can’t rule out the chance that whales can impact price changes in a single days based on outlier events.”
Chainalysis additionally recently ‘expanded‘ its real-time transaction monitoring tools to cover 10 crypto-currencies in response to demand from law enforcement agencies.