Bitcoin and Ethereum have been in a battle for the top spot as the leading crypto in the digital market. Recent events have proven both digital assets to be resilient assets in the saturated market. Over 15 new whales have joined the market and backed Bitcoin, owning over 100 BTC, elevating the asset’s credibility as a good investment.
On the other hand, Ethereum’s inflation, seen since late last year, is currently losing to Bitcoin, as its price ranges below the support. Regardless, both assets still show promise in being lucrative investments, with Bitcoin taking the lead in a market cap of $559 billion as of mid-2023.
Crypto whales owning BTC and ETH
Bitcoin, the first-generation crypto, has long had solid inventors as it keeps showing promise in the market. Currently, new wallets have been identified, owning large sums of Bitcoin, ranging from 100 to 1000 BTC.
According to recent data, 16 newly identified wallets own this number of BTC. As such, this implies a bullish trend for the first generation of crypto.
Since the first quarter of last year, the crypto realm has seen an interesting surge in investments as both sharks and whales accumulate a minimum of 10 BTC. In the past 20 months, over 11,800 addresses have been recorded crossing this level, representing an 8.12% increase in shark and whale wallet holders.
On the other hand, Ethereum has witnessed a decline in its whale account holders. Ethereum Whales are considered account holders with over 1000 ETH. The number of these holders has seen a decline over the past 3 years. This is a result of Ethereum whales offloading over 20 million ETH, suggesting a shift of confidence in the digital asset.
Considering this, it’s evident that Bitcoin whales backing BTC have shifted Bitcoin’s growth to a stable market position. Moreover, following the decrease in ETH whales, Ethereum’s losing inflation might be a result of the declining account holders. Since late December 2022, ETH has faced an upward surge in its supply in the digital market, contributing to an inflation trend.
Other factors contributed to its increased inflation based on a rise in ETH supply, among them being reduced transaction fees. However, according to market data, the digital asset is losing inflation.
Ethereum inflation is lower than Bitcoin
Currently, ETH’s burn rate is at 402K ETH per year, and with its whales exchanging their assets, its losing inflation is displaying a potential dip in market price. Regardless, its supply growth is on the rise by 0.36% over the past month and stands at 0.44% annually.
On a yearly frame, its issuance rests at 834K ETH. This is lower than the increasing creation of Ether, and considering that, its burn rate is still not enough. The transaction burning features have acted on reducing the supply of ETH and, in turn, reducing its inflation rate.
When compared to Bitcoin, Ethereum’s inflation is considerably lower. Among the major influences of this is Bitcoin whales, who go long BTC while ETH whales go short. Moreover, Ethereum has seen a decline in its price below the $1,600 mark, testing the support zone of $1,575.
Based on the market sentiments and data recorded, Ethereum’s losing inflation displayed a probable scenario where ETH might reach $1,400.
The emergence of the new Bitcoin whales has driven the demand for BTC, and this affects its value positively. Additionally, according to Whale Alert, a whale account previously transferred 9,775 BTC last week.
As the whales buy more BTC that is already limited in supply, it makes it even more scarce, in turn driving up its value. Still, regardless of Bitcoin’s deflationary trend, this has initiated a new wave of BTC whales. It’s evident that Ethereum is showcasing reduced inflation but could still rise as its adoption increases.
Source: https://www.cryptopolitan.com/new-bitcoin-whales-join-market-eth-inflates/