Ethereum whale holdings have surged significantly, representing 43% of the network’s total supply. According to blockchain analytics firm IntoTheBlock, this marks a notable increase from early 2023, when their share was 22%.
Ethereum whales keep accumulating and now hold 43% of the supply.
This is a significant increase from early 2023, when whale holdings were just 22%. The surge in accumulation is likely tied to the Ethereum merge and the opportunities in staking pic.twitter.com/XHsa9oYZOC
— IntoTheBlock (@intotheblock) January 17, 2025
The surge in whale accumulation signals growing confidence in Ethereum’s prospects. In the past week, whales have acquired over 330,000 Ether (ETH), valued at over $1 billion.
Notably, crypto expert Ali Martinez pointed out that the whales holding between 1,000 and 10,000 Ether were responsible for the substantial accumulation. Following their recent acquisitions, the group now holds 14.53 million ETH. At the time of writing, Ether is valued at $3,439, up 2.2% in the past 24 hours and 4.4% over the last seven days.
What Is Behind the Surge in Whale Holdings?
The increased accumulation could be attributed to Ethereum’s transition to proof-of-stake (PoS) after the highly anticipated Ethereum Merge, which eliminated mining in favor of staking. Staking now offers attractive yields for large-scale ETH holders, motivating whales to acquire and lock up more ETH on the network.
The shift to PoS has also provided new opportunities for earning passive income through staking, which has caught the attention of significant Ethereum holders. By locking their assets, these entities not only secure rewards but also contribute to the stability and security of the Ethereum network, which underpins many decentralized finance (DeFi) applications.
Network Activity Drives Fee Surge
The increasing activity on the Ethereum network has also led to a rise in on-chain transaction fees. In December 2024, the blockchain experienced a significant surge in fees, reaching levels not seen since April 2024. Weekly transaction fees rose to $67 million, reflecting a 17.9% increase.
On-chain data attributed the surge to heightened Ethereum network activity, fueled by increased decentralized finance (DeFi) usage and shifts in the broader cryptocurrency market. Additionally, institutional investors have shown increased interest in Ethereum-based DeFi tokens, further driving this activity. One notable crypto whale made waves by borrowing 3 million USDT to acquire 11,605 AAVE tokens.
Since October, the whale has accumulated 87,098 AAVE, worth $22.88 million, with an average purchase price of $167 per token.
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