8% of Ethereum Addresses Hold One-Third of ETH's Circulating Supply, Report Finds

Francisco Memoria

A recently published report has found that only 8% of ether’s addresses hold over one-third of the cryptocurrency’s circulating supply, with some ETH holders being ICO participants.

According to CoinDesk, blockchain intelligence firm IntoTheBlock has revealed that ether’s price drop from its near $1,400 all-time high to its current $128 price has seen 90% of its 31.31 million addresses be “out-of-the-money,” meaning they acquired ether at an average price higher than the cryptocurrency’s current value.

A large amount of these out-of-money addresses, CoinDesk reports, purchased their ether in the $211 to $530 range, while 4.77 million addresses bought in between $262 and $352. About 3.58 million bought in between $745 and $1,340.

Only 8% of the total number of ether addresses, the report reads, are “in-the-money,” which means their acquisition price was below ether’s $128 price tag. 1.78% of addresses have an average purchase price equal to ether’s current spot price.

Most of the 2.79 million addresses that are “in-the-money” acquired their funds in the $0 to $130 range, with 4,120 addresses having an average entry cost below $1. This means they likely bought in ether when the cryptocurrency initially launched in 2015 and was trading for a few cents.

One of these addresses, according to Alex Svanevik, a data scientist in crypto Land and the co-founder of data science firm D 5, has been selling its holdings. It moved over 300,000 ETH to cryptocurrency exchanges over the past four months.

The movements likely contributed to ether’s price dropping from its $360 high this year to its current price. In total, 8% of Ethereum’s addresses control 34.05 million ether, worth around $4.5 billion. It’s unclear whether exchange addresses were excluded from these addresses.

Dormant whales being able to crash the market aren’t just on Ethereum, however. As CryptoGlobe reported analysts have warned that a dormant bitcoin whale with 80,000 BTC in its wallet could “crush the market completely” if it decided to sell its stash.

The Swiss Warm to Crypto Investments

The Swiss are shifting more focus to cryptocurrency investments. This is according to a survey taken on behalf of Migros Bank, which revealed that a growing proportion of Swiss residents are invested or actively looking to invest in cryptocurrencies.

The survey which was conducted by market research institute Intervista showed that 7% of savers between the age of 18-55 already hold cryptocurrencies such as ether and bitcoin. Even more encouraging was the finding that 7% of those aged between 30 and 55 plan to extend their crypto portfolios in the future.

Unsurprisingly, the survey found younger participants to be the most bullish on the long term prospect of crypto. According to 13%, aged between 18 and 29, cryptocurrencies will become more "important" in the future.

Less extraordinary were the results of the older generation. Per the survey, respondents aged over 55 were much less likely to own cryptocurrencies, and only 0.5% thought that it was a worthwhile long term investment. 

Switzerland Ups the Ante on Crypto Regs

This uptick in demand for cryptocurrency comes just after Switzerland imposes more stringent crypto regulations. 

Jumping off recommendations issued within both the Financial Action Task Force (FATF) guidance and the EU's 5th anti-money laundering directive (5AMLD), the Swiss Financial Market Supervisory Authority, or FINMA, recently opted to tighten their travel rule.

The rule, which requires crypto firms to disclose customer information for transfers above $1,000, was initially set by FINMA at a threshold of $5,000 (5,000 CHF) but has since lessened to just $1,000 per the FATF and 5AMLD directives. 

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