Chainalysis report indicates 30% of Ethereum is controlled by 376 whales

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Bitcoin and the ensuing cryptocurrencies that are now in the market have been specially created to respect a single major principle: decentralization.
The reason is not difficult to understand as only by creating a decentralized network we can make sure there is no single point of failure in our database. Also, we have no single party that can take decisions for the entire network and thus we avoid any abuse of power or manipulation of private data.
However, in reality there is still a long road ahead towards complete decentralization and unfortunately, at the moment, the largest public blockchains in the world – Bitcoin and Ethereum – are still very much influenced by a number of individuals or groups we can refer to as “whales”. If in the case of Bitcoin, we have about 20% of all Bitcoin units controlled by these whales, in the case of Ethereum the number is a bit higher at 30%, according to Chainalysis report.
Checking the report, we find that only 7% of all Ethereum whales get involved in transactions and their activities do not affect the overall price. However, they do create an impact on market volatility especially when they start selling large volumes of Ethereum.
Another conclusion of the report is that 376 whales control around 33% of the overall supply in 2019, while in 2016 the percentage was at 47%. Similar to Bitcoin network, the whales’ grip relaxed a bit in time and Ethereum continues to become more decentralized with new people entering the market.
As the Chainalysis report indicates, Ethereum whales do not seem to take part in frequent trading activities and only account for about 10% of the total volume. Most whales simply prefer to hold tight to their Ethereum coins.
Though cryptocurrency whales are often pointed out as scapegoats for market crashes, the most important conclusion of the report indicates that whales do not influence that much prices. More important to observe is the decreasing level of Ethereum supply controlled by whales which should create a more decentralized Ethereum blockchain in the future.

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