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.

Coinbase Wallet to Make It Easier to Earn Interest via DeFi Platforms

Michael LaVere
  • Coinbase Wallet has added support for users to lend and earn interest on crypto via DeFi applications.
  • The new update allows users to access the features through one dashboard. 

Coinbase has announced support for decentralized finance (DeFi) applications through its proprietary wallet platform. 

According to the official blog post published Mar. 25, Coinbase has added support for clients to lend out and earn interest on their crypto via DeFi apps using the Coinbase Wallet dashboard. 

Users were previously able to deposit crypto on popular DeFi apps like Compound and dYdX through the wallet’s built-in decentralized application browser. The new update will allow users access to their DeFi accounts through direct integration with the Coinbase Wallet. 

According to the announcement, the update allows users to compare different rates from providers, deposit crypto and view balances through a single dashboard. Clients can also lend out their crypto and earn interest directly through the Coinbase Wallet app. 

DeFi borrowing relies upon smart contracts generated on ethereum’s blockchain in order to secure the funds for the duration of the loan. Users can lend out ethereum and ethereum-based tokens, including USDC, DAI and BAT, with interest rates varying between 0.03 percent and 4.17 percent depending upon the coin. 

Coinbase says the new features will be available for iOS users this week, with Android to follow in the coming weeks. 

Featured Image Credit: Photo via Pixabay.com