Institutions and OG whales are offloading in large quantities. How can ETH save you?

Author: Fairy, ChainCatcher

Editor: TB, ChainCatcher

Ethereum has been "not so good" lately.

From the reallocation movements of several established crypto institutions to the awakening of long-dormant whales choosing to reduce their holdings, a cold wind seems to be sweeping through the ETH market.

What’s more concerning is that this phenomenon is not an isolated event: some institutions' on-chain ETH holdings are nearing zero, spot ETF funds continue to flow out, and on-chain activity has seen a cliff-like decline… Do these signals indicate that the Ethereum ecosystem is undergoing a more profound change?

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Clearing Positions, Reducing Holdings, Selling at a Loss: Is ETH Facing a "Sell-off Wave"?

Ethereum may be quietly facing a wave of "smart money" reducing their positions. Several established institutions have recently shown unusual reallocation actions. Well-known crypto VCs like Galaxy Digital, Polychain Capital, B2C2, and Spartan Group have successively deposited thousands to tens of thousands of ETH into exchanges.

Long-dormant Ethereum whales are also gradually "reviving." Some addresses have not moved for 3 years, or even as long as 10 years, but have recently activated and transferred large amounts of ETH to trading platforms. Some whales have chosen to exit at a loss, with some even clearing their positions without hesitation.

Here is a set of data compiled by ChainCatcher, which statistics the amount of ETH deposited into exchanges by some institutions and whales recently (incomplete statistics):

By examining the remaining ETH amounts in institutional on-chain addresses, it is evident that several mainstream VCs have relatively low on-chain ETH holdings, such as Dragonfly, GSR, and Spartan Group, which currently hold only a few hundred ETH. More notably, some institutions' holdings are nearing "empty" status, with the remaining ETH in their on-chain addresses even dropping to single digits.

Here is a statistical table compiled by ChainCatcher showing the ETH holding situation of some institutional on-chain addresses (Note: Data may have certain inaccuracies due to incomplete address inclusion or attribution determination, for reference only):

Although the on-chain holding data of VCs may have uncertainties, the on-chain transfers and sell-offs that have actually occurred are too clear to ignore. Has ETH really disappointed them? Is this a strategic reallocation, or a loosening of sentiment and faith?

Let’s look at some reference data.

Network Activity Plummets, Capital Outflow Intensifies

According to data from The Block, since April 10, the number of new addresses and active addresses on the Ethereum network has both plummeted, while the average transaction fee on Ethereum has dropped from $0.86 to $0.63, indicating a sharp contraction in network activity.

Data: The Block

From the capital flow situation of Ethereum on CEX and the performance of spot ETFs, the overall trend is also not optimistic. Ethereum spot ETFs have been in a state of net outflow for nearly 30 consecutive days, with market funds continuing to withdraw. Meanwhile, in the past 14 days, the inflow of Ethereum on CEX has significantly exceeded the outflow, with a large amount of ETH being transferred to exchanges, releasing selling pressure signals.

On-chain analyst @ali_charts reported that in the past week, Ethereum whales have cumulatively sold up to 143,000 ETH, further confirming the trend of market reduction.

Data: Spot On Chain

The cold wind of the market is quietly blowing towards the heart of Ethereum. The gloomy sentiment is spreading like a plague, and investors' confidence is beginning to waver, as if a storm is inevitable.

In the face of this "bitter cold" market, is ETH really heading towards decline? Can it turn the tide and reignite hope? In this time of crisis, what can ETH do to save itself and regain the lost trust?