This accumulation of ETH by whales has resulted in reduced availability for smaller investors and retail holders, who collectively hold less than 0.1% of the total supply.

The significant increase in Ethereum whale holdings can be traced back to the Ethereum merge in 2022, which transitioned the blockchain from a proof-of-work to a proof-of-stake system.

Currently, three whale addresses hold a significant concentration of ETH, indicating that the locked-up funds are primarily used for staking rather than trading.

At present, there are 42 investor addresses holding a total of 15.2 million ETH, which accounts for 10.77% of the total supply, and their potential selling could significantly impact market dynamics.

The merge has also encouraged ETH staking, where large holders lock up their ETH to earn rewards, further decreasing the circulating supply and potentially driving price appreciation.

Retail addresses, which constitute over 99% of ETH holders, collectively possess 46% of the total circulating supply, while Ethereum is currently trading at $3,225, down 2% in the last 24 hours.

Since early 2023, the concentration of ETH in whale addresses has surged by over 90%, with these whales now owning approximately 43% of the total circulating supply.

Whale addresses are defined as those holding more than 1% of the total circulating supply, with an average concentration of 61.09 ETH per whale.