Decentralized finance (DeFi) is one crypto space that has enjoyed surging attention from both institutional and retail investors lately. Based on a report from Santiment, Ethereum whales have refused to sell their holdings.
Ethereum Whales Refuse to Sell Their ETH Holdings
The number of Ethereum whales who own more than 10K ETH has barely dipped as DeFi gets more attention, says Santiment. The analytics firm revealed that the total number of 10k+ wallets has only dropped by 0.9% in about four months. This contrasts with the 7.2% decline of addresses with 100 to 10k ETH.
A likely reason could be that the addresses are owned by corporations like mutual funds, large institutions, crypto exchanges etc. This means that they are, perhaps, holding onto the asset for investment motives.
More Ethereum Whales Likely to Invest in ETH in The Near-Term
According to Anthony Sassano, the co-founder of ETHhub, there are several reasons why more whales would invest in Ethereum in the near-term.
Anthony explained that some hodlers are stash their ETH to invest in ETH 2.0, some will include it on their balance sheet as a store of value, while others will store up ETH for gas use.
In anticipation of ETH 2.0, investors’ appetite for Ether has been growing lately. The total value locked (TVL) in the ETH 2.0 deposit contract has exceeded 3.5 million ETH, which is worth $6.3 billion.
According to Glassnode, this is about $1 billion more than the recorded value in mid-February. During the same period, the number of active validators on the network also increased by more than 26,000.