Connect with us

Ethereum

Ethereum [ETH]: Whales control majority shares, but do not move it often, claims Chainalysis research

Akash Anand

Published

on

Ethereum [ETH]: 'Whales control majority shares but do not move it often', says Chainalysis research
Source: Pixabay

The cryptocurrency market has always been susceptible to massive market movements, most of which are a result of holders called whales, crypto-users who possess a large number of coins. The latest report from Chainalysis suggests that so-called whales hold a third of all ETH and a fifth of all BTC. Chainalysis’ report stated,

“We took a deeper look into the role of Ether whales in the market and found that they account for just 7% of all economic transaction activity. Furthermore, these whales have no meaningful impact on the price of Ether; they do, however, make the market more volatile on a daily basis with their large sell-offs.”

The report claimed that Ether wales control a lot of Ether, but don’t move it very often. It further added that out of the 500 largest holders, 376 were whales. These whales controlled 33 percent of the total circulating supply in 2019, which was a fall from the 47 percent that whales held in 2016. According to Chainalysis, whales consistently hold 25%-40% of the total circulating supply of Ether, but even so, only account for only 5%-18% of the economic transaction volume.

There were other pointers from the report that dealt with the correlation between prices, as well as volatility in the market. Chainalysis reported,



“On average, a 1% increase in Bitcoin prices yesterday leads to a 1.1% increase in Ether prices today.  We find no statistically significant impact of Bitcoin prices on Ether intra-day volatility. Funds that whales send to exchanges do not directly impact Ether price but they do contribute to price volatility.”

The report continued,

“On average, a whale that sends 1 million USD worth of ether two days ago leads to a 0.1 unit increase in intra-day volatility today, which is relatively small considering values of intra-day volatility range from 0.02 minimum to 417 maximum.‍”

Another piece of information revealed by the research was that the funds received by whales from exchanges, do not impact the price of Ethereum or intra-day volatility.





Subscribe to AMBCrypto’s Newsletter


Altcoins

Ripple CTO dismisses Coin Metrics report saying it was a ‘timeline issue’, Tron [TRX] futures to soon start trading on OKEx platform and more

Febin Jose

Published

on

Ripple CTO dismisses Coin Metrics report saying it was a ‘timeline issue’, Tron [TRX] futures to soon start trading on OKEx platform and more

Daily Crypto News – May 18

1) XRP-backed stablecoin: Kava Labs is developing a stablecoin, USDX, backed by XRP on a Cosmos Zone, which dynamically maintains stability to USD with decentralized mechanisms.

Read more at https://bit.ly/2HE7xAv

2) BitMEX insurance funds: While some panicked when Bitcoin crashed suddenly, others remained calm and assessed the situation. It was noticed that there was a huge sell order on Bitstamp, which pushed the price of Bitcoin by ~20% in a few minutes.

Read more at https://bit.ly/2VNgUaK

3) USDC do not exceed balance of US dollars: News revolving around the USD Coin [USDC] had taken a negative connotation when Coinbase CEO Brian Armstrong was called out for shilling the cryptocurrency. As a way to put any fears or speculations to bed, Grant Thornton LLP, an independent accounting firm released the latest attestation report on US dollar reserves backing USDC.

Read more at https://bit.ly/2Ej5dxM

4) SatoshiPay launches Solar Wallet: SatoshiPay has been working closely and designing micro-payment apps for the Stellar Network. Earlier this year, the micro-payment solution company launched ‘Solar wallet’, a stellar network-based and user-friendly desktop wallet. The Solar Wallet has proved to be user-friendly and easy-to-use and can securely manage funds.

Read more at https://bit.ly/2HrJ6HH

5) Blockstream CSO on Bitcoin: Samson Mow, Blockstream’s Chief Strategy Officer appeared in the latest Keiser Report discussion featuring Max Keiser. Talking about the satellite, Mow said that the purpose of Blockstream satellite was to provide redundancy for the Bitcoin [BTC] network.

Read more at https://bit.ly/2VvuQkY

6) HitBTC is insolvent, claim customers: According to a series of tweets by CryptoMedication, from Zerononcense, cryptocurrency analytics and research firm, the exchange is “insolvent”. The Twitter handler exclaimed his surprise that the exchange was “still in operation” as they had only 350,000 BTCs after their liquidation.

Read more at https://bit.ly/2JtlOTK



7) Weiss Ratings on Bitcoin’s price movement: Weiss Ratings, the crypto-specific rankings company, which, at times has rubbed the cryptocurrency industry the wrong way on predictions, suggested an absence of “manipulation” and termed the fiasco as a “normal market correction”.

Read more at https://bit.ly/2JrYtlE





Subscribe to AMBCrypto’s Newsletter


Continue Reading

Trending