(BlockBar) About a third of the total ethereum in circulation belongs to just 376 individuals, finds the study by Chainalysis team. Where bitcoin is distributed more evenly, about 20% of the total bitcoin in circulation is being held by 448 people. Chainalysis has studied the blockchain addresses of cryptocurrency whales to estimate the distribution.
Kim Grauer, Senior Economist at Chainalysis, said that large owners of cryptocurrency rarely move their assets and keep them on digital wallets rather than the crypto currency trading platforms. But when these major holders move their assets to crypto exchanges to trade, there are significant impacts on the volatility.
Chainalysis is an analytical company and has filtered addresses and collected information about major holders of cryptocurrencies Ethereum and Bitcoin. The course of Ethereum is significantly affected by factors such as investor sentiment and the price of the first cryptocurrency, bitcoin. Since the beginning of May, bitcoin has grown by 52% where Ethereum gained 48% in price.
The research results were be discussed at the Consensus blockchain conference in New York. Another interesting thing about this report is the analysis is done from transactions counting down from the 2016 and 2017 levels, meaning that the Ethereum possession is declining in terms of the number of users holding the cryptocurrency. Since the data on the holders and the rate of Ethereum were collected from the beginning of 2016 to the end of April, it does not take into account the May jump in the price of ETH and Bitcoin.
Earlier dair report found that 10.5 million bitcoins, or about 60% of the total bitcoin supply, have remained in the wallets of their owners without any trading or moving around, for the past 12 months. Bitcoin turnover for the year amounted to only 7 million BTC. More than half of the bitcoins are in the hands of true hodlers. Trustnodes found out that 10.5 million coins over the past year did not move between wallets at all.