Ethereum’s 100 richest token holders are revealing a positive sentiment towards the market which has been growing in recent weeks.
This has been noticed by the team at Santiment, a data processing company.
According to the chart, these levels of accumulation are at their highest in 2020. Never before has the percentage of ETH in the hands of Ethereum whales been so high since January 1st.
It is also clear that November and December 2019 were months in which these addresses were overexposed compared to previous ones.
The scale of the chart of the holders, however, must not betray: these are percentages ranging between 24 and 26%, very little compared to the volatility that we are accustomed to seeing.
The energy that pushes up the percentage is certainly bullish signal, so far a correlation has been observed between the increase of this data and subsequent growth of the price.
The behaviour of large cryptocurrency holders remains an indicator to be taken into account. What is influencing their behaviour is linked to the fundamentals that, in this phase, push the Ethereum narrative:
- The novelties we are observing on Ethereum, recently summarized with lucidity in an interview by Vitalik Buterin, are beginning to attract interest.
- The announcement of the Baseline protocol that will accompany the Enterprises world on the ETH mainnet is a strong signal towards the adoption of this technology.
This can also be observed from the trends on Twitter, a social network known to be widely used to measure the sentiment associated with the blockchain world.
The graph doesn’t lie: there is an increasing amount of discussion about Ethereum, thanks to the new results in the DeFi field and the great interest of developers.
Another indicator on the rise that is important to mention is what is defined as the Mean Dollar Invested Age.
In this indicator, age refers to the amount of time a cryptocurrency remains on a given address. The average age related to all addresses considered forms the Mean Dollar Invested Age.
Historically, as can be observed for the long term trend of Bitcoin, in the growth phase of the Mean Dollar Invested Age there is an accumulation with price lateralization or modest growth.
Each time it falls sharply there is a movement of strong growth that heralds a collapse from which a new cycle starts.
Ethereum is certainly in a positive phase.
The Decentralized Finance world is becoming wider and more complex.