Ethereum briefly touched the mark of $2,104.54 on April 18, 2023. This made the digital token one of the biggest hits in recent times. However, there is another kind of momentum gaining traction within the community. The reports show that the number of Ethereum sharks and whales is rising despite prices decreasing.
Considering the number of wallets holding a minimum of 1,000 ETH, the number of sharks and whales has gone up by 380 addresses. This came to light when the prices were down by 38.4%. The drop in the price likely helped the newly onboarded addresses accumulate more ETH than usual. The same holds true for existing sharks and whales.
ETH sharks and whales with over a thousand tokens were 6,712 on April 26, 2023. A year later, the number represented the mark of 7,092.
There is also an ongoing discussion about the number of addresses with at least 100 ETH. This does not come as a surprise that that number has increased as well. The previous year, that is, 2022, saw the number jump to 48,255 as of December 26, 2022, against 42,644 as of January 1, 2022.
Edith Reads, an investment expert, has stated that despite short-term volatility, the increase in whales and sharks indicates the community’s growing confidence in the token. Those who believe ETH has a more promising future can now be assured of this outcome. Unsurprisingly, volatility still possesses the ace card.
The last observed Ethereum trading price was $1,910.3. While this is not the lowest price for the token, it is also not the highest. Existing and new traders leverage the current market price of ETH to ensure they can sell it when the price rises. In other words, a lower or average price increases the number of ETH whales and sharks. Ethereum prediction sees the price going as high as $3,900 by the end of this year.
The rise in the number of ETH sharks and whales goes on to show that ETH is still popular, even after going through turbulence where the price touched $1,773.70 on March 28, 2023.
Sharks and whales come with both positives and negatives for the crypto market.
For instance, a higher number of whales and sharks means that the community will have more liquidity to play with. On the other hand, it also means that a small group will now have more power to manipulate prices.
Liquidity in the crypto market comes in handy since it provides stability. Manipulation, however, causes disruption when the traders decide to implement a pump-and-dump policy. They first invest the funds in a specific crypto and then dump them all together when the prices rise.
Ethereum sharks and whales have surely grown in number in the past few days. It carries something good for the ETH community, but they also must remain on the edge of any uncertainty.