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August 9, 2022
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Ethereum whales do not sell their ETH during the increase in demand for DeFi –

The number of wallets holding over 10,000 ETH has only dropped slightly in the last four weeks. Ethereum whales count on further increases as DeFi demand increases again.

Ethereum whales

According to the data from Santiment, the number of wallets holding more than 10,000 ETH – currently worth around $ 17.7 million – has only dropped 0.9% in the last four months. This compares with a 7.2% drop in the number of wallets holding 100,000-10,000 ETH.

A possible explanation for this discrepancy is that the whale addresses may belong to large entities such as stock exchanges, corporations or funds. These, in turn, must keep capital close to each other, e.g. for investment purposes.

On March 18, ETHhub co-founder Anthony Sassano wrote in his newsletter that companies and institutions are increasingly buying and storing ETH.

Moreover, I expect many public companies to announce the purchase of ETH in the coming months, for various reasons. Some will accumulate ETH to use it as a gas. Some will buy it to stake ETH2. And some people will put it on their balance sheet as a backup source of capital.

Anthony Sassano

Ethereum and DeFI

The amount of capital blocked in DeFi protocols also reached the highest level in history. It seems that mid-level addresses are depositing more ETH in DeFi because of this.

According to the statistics of the wallet provider Defi – Debank, the amount of Ethereum blocked in DeFi is close to reaching the peak – 9.6 million ETH.

This represents 8.3% of the total ETH supply and is estimated at around $ 17 billion (at current prices). The amount of the blocked ETH surpassed 10 million on March 11 for the first time.

Additionally, according to ETH2 Blockchain Explorer, ETH 3.53 million is currently stacked – or $ 6.3 billion. These two factors contributed significantly to keeping the price of Ether hovering around $ 1,800 on March 9.

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