July 15, 2024
Altcoins News

Ethereum Whales Amass ETH Holdings While Researchers Ponder Scaling Beyond EIP-4844


Ethereum developers have been engaged in discussions regarding the challenge of scaling, which has hindered broader adoption of the ETH blockchain by users. Over the past few years, a group of researchers, in collaboration with ETH founder Vitalik Buterin, has been working on an alternative scaling solution beyond EIP-4844, the proposed improvement known as “proto-danksharding.”

These researchers have drafted a proposal and shared it with the Ethereum community, a move that many consider a positive development for the long-term utility and adoption of this altcoin. Concurrently, while Ethereum’s blockchain undergoes ongoing research and development, significant investors holding large wallets on the network have been consistently accumulating ETH tokens. This accumulation has led to a reduction in the supply of ETH on centralized exchanges like Binance. This trend contributes to a bullish outlook for Ethereum in the long run.

Additionally, please read about EIP-4844 to understand why it is considered a significant game changer for Ethereum.

“Ethereum developers propose scaling beyond EIP-4844”

Researchers within the Ethereum network are exploring an alternative peer-to-peer solution to scale the underlying blockchain. Their aim is to simplify the design and expedite Ethereum’s scaling process compared to EIP-4844 and existing solutions within the ecosystem.

The researchers have introduced an early draft named “PeerDAS” and have welcomed feedback and discussions to refine their research. The concepts presented in the proposal were inspired by conversations with Ethereum creator Vitalik Buterin, as well as individuals from Codex, RIG, ARG, and Consensus R&D. The development of this scaling solution has been in progress for the past couple of years.

It’s important to note that further development and implementation of this scaling solution will require multiple rounds of testing and other phases before it can be approved and integrated as an upgrade to the Ethereum blockchain.

This research and development update is likely to bolster a positive sentiment among Ethereum holders, as its ultimate goal is to address the challenge of scaling the blockchain network, a problem that has been partly addressed by Layer 2 and 3 chains.

“Whale accumulation supports Ethereum’s bullish thesis”

By examining two crucial on-chain metrics:

  1. Supply held by top addresses (as a percentage of the total supply): This metric is used to identify accumulation by large wallet investors over a specific period.
  2. Supply on exchanges: This measures the volume of Ethereum tokens held in centralized exchange wallets within the ecosystem and is used to gauge buying or selling pressure on the asset.

It is evident that large holders, often referred to as “whales,” have consistently been accumulating Ether tokens since August 18. Furthermore, these significant wallet investors have continued to acquire Ethereum in tandem with positive developments and updates within the ETH ecosystem, including the recent research aimed at addressing scaling challenges.

As depicted in a chart from crypto intelligence tracker Santiment, top addresses now collectively possess 35.26% of Ethereum’s total supply, an increase from 34.89% on August 18. Notably, this date on the chart marks a significant divergence between the supply held by top addresses and the supply on exchanges. During this period, ETH supply on exchanges decreased by nearly 2%.

The reduction in the number of ETH tokens held on centralized exchanges indicates a decrease in selling pressure, which augments the bullish outlook for Ethereum’s price. Likewise, the accumulation of ETH tokens by large wallet investors signals that the price of ETH is poised for upward movement.

As of the time of writing, Ethereum is trading at $1,624.20 on Binance.

Photo by Jievani

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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