Just 376 Whales Reportedly Hold Over 30% of All Ether (ETH)

Siamak Masnavi

According to a research report published on Wednesday (May 15) by crypto surveillance firm Chainalysis, just 376 "whales" hold one third of all ETH.

Although one of the original motivations for cryptocurrency was decentralization, Chainalysis' research has shown that over 30% of all Ether and over 20% of all Bitcoin is controlled by whales.

Chainalysis' latest reseach report found that Ether whales

  • account for only 7% of all "economic transaction activity;
  • have no "meaningful impact" on the Ether price; and
  • increase intraday price volatility with "their large sell-offs."

Chainalysis defines whales as "the top 500 holders of cryptocurrency, excluding services, who store their holdings off exchanges." The good news is that although whales control 33% of the circulating supply of ETH, in 2016, they controlled even more -- 47%.

Chart From Chainalysis

Despite controlling one third of the circulating supply of ETH, the whales do not move their ETH very often, accounting for "between 5% and 18% of economic transaction volume." The reason for this is that around 60% of the whales are not active traders (i.e. they "are holding their assets or not regularly trading with exchanges").

By looking at the Ether price from early 2016 to the end of April 2019, Chainalysis found that

  • "Ether prices follow Bitcoin prices." (On average, the ETH price goes up by 1.1% if the BTC price goes up by 1%.)
  • "Funds that whales send to exchanges do not directly impact Ether price but they do contribute to price volatility."
  • "Funds that whales receive from exchanges do not impact Ether prices, nor intraday volatility."

Kim Grauer, a senior economist at the company, told Bloomberg in an interview:

“We’re excited to bring the models that have been applied to the stock market to cryptocurrencies."

According to CryptoCompare, at press time, Ether is trading at $260.24, up 11.18% in the past 24-hour period:

ETH - 24 Hour CC Chart - 16 May 2019.png


Ether Whale Chart Courtesy of Chainalysis. The full research report is available as a blog post on the Chainalysis website.

Decentralized Exchange Kyber Network Adds Fiat-to-Crypto Support

Michael LaVere
  • Kyber Network DEX announces support for ETH purchases using fiat.
  • Clients can use the exchange's website or iOS and Android mobile applications. 

Decentralized cryptocurrency exchange (DEX) Kyber Network has announced support for a new fiat-to-crypto gateway that will allow users to directly purchase Ethereum's ether. 

Fiat to Ether DEX Support

According to the announcement, Kyber Network has become the first DEX to support the direct purchasing of ether using fiat. The release claims that clients can use either debit or credit cards in the purchase of ETH, in addition to instituting a low minimum purchase of 15 EUR per transaction. 

Support for the new feature comes after KyberSwap’s recent partnership with Coindirect.com, a third-party service backed by MakerDAO which allows for the purchase of crypto via fiat. Kyber Network says they were prompted to implement crypto for fiat purchases as a way for new users to have easier access to ether,

“Everyone needs to first buy Ether (ETH) from somewhere, whether to trade or to use DeFi (decentralized finance) applications...Generally the first step is the hardest, but it’s even harder when it comes to buying cryptocurrency.”

The new gateway will be available through the DEX’s official website in addition to the iOS and Android mobile applications.


Featured Image Credit: Photo via Pexels.com