Source: Adobe / Tomasz Zajda
The crypto market is hot right now, and according to blockchain analytics firm Chainalysis, stakes are increasing for new whale investors looking to get a piece of decentralized funding (DeFi) by buying Ethereum (ETH).
According to the latest analysis by Philip Gradwell, Chief Economist at Chainalysis, many people are now entering the “Crypto Casino” and this movement could be sustained for a long time, especially given that the market has much more functioning apps and uses than in the cases Year 2017.
“I think it is now a matter of time, not case [widespread digitization of assets] happened, ”he wrote. Even so, it shouldn’t occur until after the current hype subsides, he concluded, adding that “unless you’re playing a very long game in crypto, you should probably be playing a very short game.”
Gradwell also argues that ETH’s recent accumulation has been driven by “big new players who have brought huge fortunes to the casino”. For each chain analysis, 53.3 million ETH, which corresponds to 46% of the total offer, are kept in unprotected purses with more than 10,000 ETH. Since November 2020, this group of whales has increased its population by 7 million ETH and has recently been the main accumulator.
Also, fresh Ethereum whales that launched in the past six months have accumulated coins and increased their total stock by 6.3 million ETH, while longer-term whales that were active in 2017 and earlier increased their stock by 800,000 ETH Coins have decreased over the past six months.
In addition, the buying pressure that has driven ETH to USD 4,000 and above comes from DeFi, as around 10 million ETH have entered DeFi wallets since May 2020. These new Ethereum whales appear to be actively involved in DeFi services. Still, Gradwell concluded that it’s too early to answer the question of whether they’re playing the long game of technology adoption or just engaging in some short-term hype:
“To me it feels like Fear Of Missing Out is coming and the mood will drive the market for a while. But will the level of investment and interest drive the technology and adoption enough to keep prices up before the hype subsides and the fear of missing out turns into fear of uncertainty and doubt? As always in crypto, that’s the question! “
– Buterin paid USD 800+ in fees for 9 major transactions on Ethereum
– The rise of YFI & Woofy could be a determining factor in the rotation from Ethereum to DeFi
– Why Ethereum Is Far From Ultrasonic Money
– If history rhymes, ETH could reach USD 19,000; Downside risk stronger than with BTC