Original author: Fairy, ChainCatcher
Original editor: TB, ChainCatcher
Ethereum hasn’t been doing well lately.
From the unusual portfolio adjustments of several established crypto institutions to the long-sleeping whales awakening and choosing to reduce their positions, a cold wind seems to be blowing through the ETH market.
What is even more worrying is that this phenomenon is not an isolated incident: the on-chain ETH holdings of some institutions are close to zero, spot ETF funds continue to outflow, and on-chain activity has also plummeted... Do these signals mean that the Ethereum ecosystem is undergoing more profound changes?
Clearing out, reducing holdings, and leaving at a loss: Is ETH experiencing a selling spree?
Ethereum may be quietly facing a wave of “smart money” reducing its holdings. Many established institutions have recently made abnormal adjustments to their holdings. Well-known crypto VCs such as Galaxy Digital, Polychain Capital, B2C 2, and Spartan Group have successively deposited thousands to tens of thousands of ETH into exchanges.
Long-dormant Ethereum whales are also gradually resurrecting. Some addresses have not been moved for 3 years or even 10 years, but recently started to transfer a large amount of ETH to trading platforms. Some whales chose to leave at a loss, and some even liquidated their positions directly without hesitation.
The following is a set of data compiled by ChainCatcher, which counts the amount of ETH that some institutions and whales have recently deposited in exchanges (incomplete statistics):
By looking at the remaining ETH in the on-chain addresses of institutions, it is obvious that the on-chain ETH holdings of many mainstream VCs are relatively low. For example, Dragonfly, GSR, Spartan Group and other institutions currently hold only a few hundred ETH. What is more noteworthy is that the holdings of some institutions are close to the empty position state, and the number of ETH left in the on-chain addresses is even as low as single digits.
The following is a statistical table of ETH holdings of some institutional on-chain addresses compiled by ChainCatcher (Note: the data may have certain errors due to incomplete inclusion of addresses or attribution determination, for reference only):
Although there may be uncertainty in the on-chain holdings of VCs, the actual on-chain transfers and sell-offs are too clear to ignore. Did ETH really disappoint them? Is this a strategic adjustment of positions, or a loosening of emotions and beliefs?
Let’s look at some reference data.
Network activity has dropped sharply, and capital outflows have intensified
According to data from The Block, since April 10, the number of new addresses and active addresses on the Ethereum network have both dropped sharply. At the same time, the average transaction fee of Ethereum has also dropped from US$0.86 to US$0.63, and the network activity has shrunk sharply.
Data: The block
Judging from the flow of funds on Ethereum on CEX and the performance of spot ETFs, the overall trend is not optimistic. Ethereum spot ETFs have been in a state of net outflow for 30 consecutive days, and market funds continue to withdraw. At the same time, in the past 14 days, the inflow of Ethereum on CEX has been significantly higher than the outflow, and a large amount of ETH has been transferred to the exchange, releasing a signal of selling pressure.
Data from on-chain analyst @ali_charts shows that in the past week, Ethereum whales have sold a total of 143,000 ETH, further confirming the markets trend of reducing holdings.
Data: Spot On Chain
The cold wind of the market is quietly blowing towards the heart of Ethereum. Depressed sentiment spreads like a plague, and investors confidence begins to waver, as if a storm is inevitable.
Facing this “bitterly” market, is ETH really headed for ruin? Can it turn things around and rekindle hope? In this crisis-ridden moment, what can ETH do to save itself and win back the lost trust?
