While some investors panicked during the recent market crash, Ethereum whales continued to accumulate large funds. As a result, the number of large ETH holders has risen to an all-time high. Meanwhile, ETH is showing serious gains against BTC during the day.
The second largest cryptocurrency entered the new year at just over $ 700. With heavy use of the Ethereum blockchain in DeFi and NFT, impressive bull run across the entire market, ETH is on the rise in the coming months.
Thus, on April 16, we witnessed the cryptocurrency hit an all-time high of about $ 2,500. After this close to 250% increase in less than four months, the market collapse came and ETH fell to $ 1,950.
Data provided by analytics firm Santiment shows that most retail investors are either selling some portions or just sitting and watching high volatility. By contrast, Ethereum whales are experiencing a shopping spree.
The firm noted that the number of such accounts holding at least 10,000 ETH has grown rapidly since the beginning of the year. However, they have become particularly active since Sunday, resulting in a new record.
The aforementioned high employment of the Ethereum blockchain has led to significant problems for the network, primarily associated with scaling. As a result, the fees users have to pay when trading on Ethereum have continued to rise since the beginning of the year, reaching a new high at the end of February.
Since then, average transaction costs have dropped slightly, but are still over $ 20, according to Ycharts data. The drop is not enough for users, and Ethereum developers have brought new offers and upgrades to the network aiming to further lower the fees.
The latest hard fork called Berlin came last week. It initially caused some synchronization issues for network nodes. Although they have been corrected, the upgrade did not manage to lower the fees significantly.
Some reports also claimed that the controversial and long-awaited EIP-1559 update could also fail, which should arrive with a London hard fork in July 2021.
It is also worth noting that ETH has made significant gains against Bitcoin today. The cryptocurrency has made significant progress against BTC in the last few hours alone, up almost 7%.