Crypto whales

The Crypto bear market of 2018 was a nightmare for a lot of investors. The whole cryptocurrency market declined by 80% from the all-time high in December of 2017 making every Digital Currency investor’s worst nightmare a reality. Some digital assets lost 90% or more from their valuation and the worst part is that the bear market has continued for a year. This however does not affect Crypto whales who are mostly gaining new riches.

Most likely the bear market has ended and the crypto market is preparing for the next bull run, something that will be remembered for sure. However, during the bear market a lot of investors sold everything in panic and cashed out, leaving their Crypto mostly in the hands of whales. The rich get richer and the same goes with Crypto whales.

When we analyze the Ethereum blockchain, data shows that Crypto whales mostly accumulated more Cryptocurrencies during the downturn and bought at the bottom. Data shows that active wallets of Crypto whales have nearly doubled in size during 2018, thus increasing dramatically in size and holdings.

Crypto whales are growing their Crypto holdings

Nearly 20% of all Ether is in the hands of Crypto whales worth around $3 billion. A big factor for this is the Initial Coin Offering (ICO) boom. Since most of the new Digital currencies are paired with Ethereum, when people dump ICO tokens they eventually dump their Ether too.

Traders that diversified smartly turned their tokens for profit or diversified in long term ERC-20 tokens. Most investors managed to cut their losses, but many failed to do so. A report from 2018 stated:

“The massive growth in Ether holdings by active Crypto whales is most likely the result of traders exiting the trading of tokens, most of which have been paired with Ethereum, which has plummeted by all accounts versus the start of the year.”

The growth of Crypto whale holdings doesn’t relate with the increase in wallets that qualify as Crypto whales. In fact, since the beginning of 2018, active whale wallets have declined by 30%. This is a factor in the increase of the gap between whales and traders. On the other hand, whales had a larger supply of Ether in 2017 holding more than 30 million ETH. This was a third of the Ethereum supply back then.

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