ETH whales are showing sustained accumulation according to on-chain data, and this pattern represents a departure from the whale sell-off trend that has been impacting the network for months. So let’s read more in our latest Ethereum news today.

Data from Santiment shows ETH whales showing sustained accumulation over the past two weeks, breaking through a sustained downtrend in ownership levels after the start of the year and again owning over 12% of supply. ETH whales are defined as addresses holding between 1000 and 10,000 ETH, which equates to between $3 million and $30 million worth of coins at today’s prices. On Thursday, whale ownership was at 12.07% of ETH, up from 11.92% about 10 days earlier.

Basic fee at the ETH
Base Fee on Ethereum. View source “The Burn”.

Whales have rarely shown sustained accumulation over months, but concentration among keepers spiked in December and has since declined. The accumulation is associated with the higher prices as the given cryptos have become scarce for the market. Bitcoin price broke higher after an apparent walk-up of $1.6 billion and ETH price has yet to react positively but is in a week-long decline.

As previously reported, Ethereum’s consensus layer deposit contract contains over 12 million ETh and over 10% of Ethereum’s supply. Over 360,000 validators locked 32 ETH into the contract, which will allow funds to be moved from mainnet to Beacon Chain, an ongoing PoS version of Ethereum that mainnet is set to merge with in the future. The deposit contract for the ETH consenSys layer known as ETH 2.0 exceeded 12 million ETH, which is worth about $34 billion at current prices. This means that around 10% of the total ETH supply is locked in the consensus shift custodian contract.

net eth output
Net issuance of Ethereum per month. View source “The Burn”.

The Ethereum Foundation Trent Van Epps emphasized that the merger will not only make the chain more secure, but also reduce the energy consumption of the ETH network by 99.95% and the merger will reduce the annual issuance of ETH to a net 0% compared to the current one can 3-5%. In addition to more than 12 million, 2.18 million ETH coins locked in the Beacon Chain custody contract have been destroyed since the 1559 Enhancement Proposal was introduced in August. The upgrade aimed to stabilize network transaction fees and introduced a basic ETH Burn fee.

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