An exhaustive study of 10,000 Ethereum (ETH) wallet addresses, conducted by analyst Adam Cochran and his team, has revealed information on the participation of important companies in the crypto market. According to Cochran’s findings, there are wallet addresses associated with JPMorgan, IBM, Microsoft, Amazon and Walmart holding ETH.
Within the study, Cochran manually reviewed the top 10,000 ETH addresses, which account for 91.7 million ETH and thus 56.7% of the total offer. The analysis of the data found yielded information on liquidity, profitability, market manipulation and, particularly relevant, the behavior of Ethereum’s whales. The study states that 17% of the total ETH offer is stored in only 10 addresses. This corresponds to a number of 16.6 million ETH.
By this comparison, the study claims to disprove the centralization of the Ethereum, Bitcoin’s top 10,000 addresses represent 57.44% of the total supply with 10.54 million BTC. Therefore, the distribution among these cryptocurrencies is practically the same. In contrast, on TRON 1031 addresses have 51.1% of the total TRX; 55.2% of Ripple’s XRP token is distributed in 16 addresses and 54.3% of Litecoin’s supply is distributed in 300 addresses. In terms of distribution of their supply, the study states, Ethereum and Bitcoin “are in a league of their own”.
In addition to discovering Ethereum wallets associated with JPMorgan Chase, Reddit, IBM, Microsoft, Amazon and Walmart, the study was able to determine that all of these addresses are accumulating ETH. However, the study cannot determine the reasons for this, the amount of ETH accumulated, nor whether this is a corporate initiative.
Despite this, it is possible to speculate that the companies mentioned have a significant amount of ETH given that they are in the top 10 thousand addresses. The accumulation of ETH through institutions is evidenced by looking at Grayscale’s latest report. The asset management firm owns 1% of ETH’s supply and has been increasing its acquisition rate significantly over the last few months.
Institutions, investors and companies like the ones mentioned may be accumulating ETH because of its bullish outlook. A previous study by Cochran already showed how the Ethereum 2.0 launch could be an extremly bullish event for the ETH price. In his study, Cochran argues that Ethereum 2.0 will be the driver of unprecedented “economic change”. When the level of ETH staked begins to rise, according to Cochran, a supply shock will occur. This will be driven by increased demand for ETH from investors and whales that will compete for available ETH.
Along with the increase in demand for ETH, the emission of the cryptocurrency will also have a reduction. According to the co-creator of Ethereum, Vitalik Buterin, the emission of ETH with Ethereum 2.0 will sink from 4.5 million (current level) to between 100 thousand and 2 million. Therefore, investors will want to invest more money in ETH to increase their profits by staking. With that, there will be a direct impact on the price. In that sense, the recent study found that there are 100 million ETH in circulation and only 9% have been burned or lost.
This discovery is important for determining the profits that investors will make when Ethereum 2.0 is launched. As can be seen from the table below, investors could achieve an annual profit of 18.10% with an annual issuance of 180,000 ETH.
ETHEREUM BUYING LINK
MAY 03, 2020
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