- An Ethereum whale sold the majority of its holdings as large holders showed bearish sentiment.
- Regardless, developers continued to make network improvements.
Bitcoin’s [BTC] recent price surge above $26,000 had a ripple effect on the Ethereum [ETH] market, driving a positive surge in price. However, whales remained uninterested.
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Ethereum whales get cold feet
Ethereum whales, who had long held their positions, began to offload their holdings recently. Lookonchain’s data highlighted a wallet that had been dormant for four years, suddenly selling off all 2,591 ETH for a substantial $4.18 million in stablecoins.
A wallet that had been dormant for 4 years sold all 2,591 $ETH for $4.18M stablecoins 6 hours ago.https://t.co/et78rXHG5u pic.twitter.com/pJanMLxwA3
— Lookonchain (@lookonchain) September 20, 2023
The trend wasn’t limited to isolated sales. Glassnode’s data revealed a significant reduction in whale holdings. The number of addresses holding more than 1,000 ETH hit a five-year low, with just 6,082 such addresses remaining at press time.
This indicated a shift in strategy for major ETH holders.
Source: Glassnode
This sudden shift in whale behavior raised questions about its potential impact on ETH’s price. With large holders selling off, it could lead to downward pressure on ETH.
Developers forge ahead
Meanwhile, despite the whale-related concerns, Ethereum developers remained committed to improving the network. In a recent developer call, updates on Ethereum’s Devnet-8, a test network centered around Dencun, were shared.
This testnet, near finalization, had various client teams, including Prysm, Besu, and Nethermind, actively pushing updates for experimentation.
Developers also tackled network challenges head-on. They discussed a proposal to limit Ethereum’s validator sets’ growth rate, initially capping the churn limit at 12 validator entries but later adjusting it to eight.
This adjustment aimed to forestall potential issues arising from Ethereum’s expanding staking system. With broad developer support, the proposal is set to be included in the upcoming Dencun update, with code finalization in progress.
How is Ethereum doing?
At the time of reporting, Ethereum’s price was $1,634.14. However, trading volume had dipped by 16% in the preceding 24 hours, reflecting some uncertainty among traders.
Realistic or not, here’s ETH’s market cap in BTC’s terms
Ethereum’s DeFi activity also exhibited signs of a slowdown, particularly in its Total Value Locked (TVL). While Ethereum’s price dynamics and whale activities remained in focus, the DeFi sector witnessed a notable reduction in TVL.
This indicated changing dynamics in the DeFi landscape that could have negative implications for Ethereum’s role in decentralized finance in the future.
Source: DefiLlama
