Ether Supply Concentration Increases to 97.6% Among Top Holders

As of Wednesday, data from Glassnode reveals that the top 1% of addresses now hold 97.6% of Ether’s supply, marking an increase from the prior year’s 96.1%.

Despite the growing concentration, Iliya Kalchev from Nexo notes a ‘restrained’ market reaction, with investors selectively building portfolios amid increasing derivative trading activity.

Strategic Portfolio Tactics and Derivatives Play Key Roles

Ether’s supply concentration among the top 1% of addresses has increased significantly, now at 97.6%, up from 96.1% a year ago, according to Glassnode. This trend signifies a greater accumulation by large holders, impacting overall market dynamics and liquidity.

Increased concentration among top Ether holders may lead to reduced liquidity for retail investors. However, market responses remain restrained, as investors rebuild portfolios strategically rather than broadly, focusing on individual asset selection within their portfolios.

“The market reaction remains restrained. Stable fund inflows and increasing derivative trading activity indicate selective portfolio rebuilding rather than active rotation.” — Iliya Kalchev, Nexo

Market Analysis and Current Trends

Did you know? Increased Ether concentration among top holders could significantly influence market liquidity and pricing structures.

Ethereum’s current price stands at $3,068.42, with a market cap of $370.34 billion and a market dominance of 11.84%, as per CoinMarketCap. It experienced a 24-hour price increase of 2.37% despite recent downturns over 30, 60, and 90 days. Trading volume fell 28.96% to $15.91 billion, reflecting caution.

Insights from Coincu’s research team indicate that increased Ether concentration among top holders could significantly influence market liquidity and pricing structures. Large holders could exert control over pricing through strategic accumulation and distribution activities.