A top crypto analytics firm says that the 200 largest Ethereum (ETH) holders went on a massive buying spree in the past year, picking up over $2.9 billion worth of the leading altcoin.
According to Santiment, the top 200 ETH whales are now holding more than 62 million ETH valued at about $124.1 billion, an increase of around 14.5 million ETH from the same time last year.
Santiment also says there was a huge spike in ETH wallets created on Monday, the largest since July.
“The 200 largest Ethereum wallets now hold a combined 62.76 million ETH, currently worth ~$124.1 billion. They have accumulated 30.3% more coins since November 21, 2022. Additionally, 94,700 new ETH wallets were created yesterday, the highest spike since July.”
Next, the firm says that the broader crypto markets dipped after the Binance news broke.
“The bombshell news of [Changpeng Zhao] stepping down after the DOJ (US Department of Justice) found him guilty for laundering and fraud is still hitting the mainstream. Altcoins have been extra volatile, and buy-the-dip opportunities may arise depending on how much FUD (fear, uncertainty and doubt) this causes.”
The firm says that Binance’s ecosystem native token Binance Coin (BNB) was among the most affected.
“Binance Coin has understandably been among the altcoins hit the hardest on news of [Changpeng Zhao] stepping down as CEO. But if a quick reputation recovery happens for crypto’s number one exchange, a BNB bounce would be likely based on this level of trader FUD.”
The firm suggests that a decline in altcoins had already started prior to the Binance news. The firm also notes that it appears some BNB holders are swapping their coins for FTX’s native token FTT.
“Although many see the Binance news as the main culprit for one of the biggest retraces of the year, the fact of the matter is that altcoins had already seeing shrinking market caps. Interestingly, it appears some traders are swapping their BNB for FTX’s FTT.”
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