Number of Ethereum Whales on the Decline as Market Sees a Massive Correction

The ongoing market correction is stirring the attainment of new records in the crypto industry, albeit on the bearish side. Ethereum (ETH), the world’s second-largest digital currency by market capitalization, has seen its meteoric rise to a new all-time high (ATH) truncated with on-chain metrics spiraling downwards.

According to Glassnode analytics, the number of Ethereum investors by holding at least 100 coins has just reached a 3-year low of 42,928.

The specific downturn in investor’s sentiment towards Ethereum came as the broader market is battling news of uncertainties across the board. Asian giant China, where the bulk of the Bitcoin and crypto mining activities takes place, has wielded the big stick with a firm stance that may see miners sent away. This is a move preceded by the ban on crypto activities for the country’s financial institutions.

Concerned thought leaders in the cryptocurrency ecosystem have expressed worries over the energy consumption demands of digital assets generated through mining. With the bulk of this activity being fueled by coal-generated energy, the environmental sustainability concerns have may be influencing the move by the Chinese regulators to purge its shores of the activities of miners.

The current Ethereum blockchain works based on the Proof-of-Work (PoW) model, and as such, the mining concerns are valid. However, the market responds to a more pervasive bearish sentiment that does not exonerate any digital currency or tokens. At the time of writing, Ethereum was trading at $2,215.57, up 0.41% in the past 24 hours after paring off some of the losses accumulated during the weekend. 

As the big coin holders are giving away their coins, the price of Ether has taken a massive plunge from the ATH of $4,362.35 set earlier in the month. Barring any united upsurge in the global cryptocurrency market, Ethereum will be looking forward to renewed investor’s interest as well as its forthcoming London Hardfork or EIP 1559 upgrade to push for a resounding recovery.