- Ethereum mega-whale addresses decline steadily, suggesting large holders are offloading their ETH positions since February 2024.
- For the first time, Ethereum's exchange balance drops below 10%, signaling rising self-custody and DeFi participation.
- Bitcoin exchange balances remain more stable, while Ethereum sees sharper declines, highlighting differing trends in user behavior.
In recent months, large Ethereum holders have been reducing their positions, a potential shift in market dynamics. Data shows a steady decline in Ethereum addresses holding more than 10,000 ETH, often referred to as mega-whale addresses. This trend, occurring amid a broader downturn in crypto markets, highlights a substantial movement in the behavior of major market participants.
Ethereum Mega-Whale Addresses See Continued Decline
Notably, the number of Ethereum addresses holding over 10,000 ETH has shown a declining trend since late February 2024. Data indicates that after a brief increase in June, the number of these mega-whale addresses resumed its downward trajectory.
This decline became especially pronounced from mid-July onwards, as fewer addresses retained such large balances. Despite brief periods of stabilization, the overall trend has been negative, pointing to a broader reduction in Ethereum holdings among large entities.
The 30-day change in these addresses reinforces this pattern. The red bars on the chart, which represent this metric, show a persistent negative shift for most of the observed period. Though there were moments of accumulation or temporary stabilization, the prevailing sentiment appears to favor reduction rather than accumulation.
Ethereum’s Exchange Balance Drops Below 10%
However, amid the continued sell-off from Ethereum mega-whale holders, a contrasting trend has emerged. The balance of Ethereum held on exchanges has dipped below 10% for the first time ever, reaching 9.985% by mid-August 2024. This is a notable shift, especially when compared to Bitcoin's exchange balance, which currently stands at 15.289%.
This reduction in Ethereum's exchange balance may suggest growing interest in alternative uses for ETH, such as staking or participation in decentralized finance (DeFi) activities. As more ETH is moved off exchanges, it indicates that significant volumes of the cryptocurrency are being transferred to wallets or other platforms outside the control of centralized exchanges.
Bitcoin and Ethereum Show Diverging Trends on Exchanges
Comparatively, Bitcoin’s exchange balance has remained more stable, with only a moderate decline from its peak in 2020. In contrast, Ethereum has experienced a sharper drop, particularly since 2020, when the ETH exchange balance began decreasing more dramatically.
The continued divergence between Bitcoin and Ethereum exchange balances reflects differing trends in how users manage their holdings. While Bitcoin holders have maintained more stable balances on exchanges, Ethereum users seem increasingly inclined toward self-custody, staking, or DeFi engagement, which might explain the significant decrease in ETH held on exchanges.
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