In recent weeks, major investors have been actively acquiring Ethereum even as retail traders sell their holdings amidst price fluctuations.
Major Wallets Increase Ethereum Holdings
Over the past month, large holders of Ethereum (whales and sharks) holding between 1,000 and 100,000 ETH have added a total of 1.49 million ETH, which represents a 3.72% increase in their overall holdings. These wallets now collectively hold 41.61 million ETH, accounting for nearly 27% of Ethereum's current supply, according to data from analytics firm Santiment.
DeFi Market Activity in Ethereum
There has also been increased interest in Ethereum in the DeFi market. For instance, whale transaction activity on the Ethereum Name Service rose by 313.5%, while the Ethereum lending protocol followed with a 203.8% increase. Additionally, USDC transfers on Ethereum layer 2 have also seen significant growth.
Challenges for Companies with Ethereum Treasury
Some companies, such as SharpLink Gaming, have faced challenges after a significant drop in their stock price by 73% following the announcement of a large share sale for potential resale. This move prompted dissatisfaction among investors who had supported the company's Ethereum acquisition plan. Chairman Joseph Lubin clarified that the information was misinterpreted by the market.
Thus, while major Ethereum holders and DeFi segment show strong activity, the market faces certain challenges, and retail traders tend to cash out their assets.
