A third of the world’s ether (ETH) is owned by just 376 people, according to Chainalysis research published on May 15.
Chainalysis concluded that while these individuals don’t necessarily have a meaningful impact on ETH’s price, they do contribute to market volatility when big sell-offs are made.
Analysis of activity from 2016 to 2019 also revealed that ether prices tend to follow movements in bitcoin (BTC.) Researchers added:
“On average, a 1% increase in bitcoin prices yesterday leads to a 1.1% increase in ether prices today.”
Overall, the blockchain analytics company believes that concerns about the impact of whales on market prices may have been overstated, but added:
“We cannot rule out the possibility that whales can impact price changes within single days based on outlier events.”
Last month, the company’s research revealed that at least 95% of crypto crimes investigated by law enforcement involve BTC.