The crypto industry at large saw a massive price drop at the beginning of September, but there might just be a silver lining to this. With Ethereum going down by 30%, a minimum of 68 new Ethereum whales sprung up and joined the network. This could potentially add millions in holdings to the network.
At Least 68 Whales Born From 30.2% Price Drop
Ali Martinez stands as a crypto analyst and shared Santiment data that made it clear that the number of investors that hold anything between 1,000 and 10,000 Ethereum (ETH) had increased by a minimum of 68. This occurred within three days since the end of the 31st of August, 2020. This occurred during a price drop, which saw ETH go down to $326 on the 5th of September, 30.2% less than what it was on the 31st of August, 2020.
The DeFi Market’s rampant growth had inadvertently started to double down the ongoing demand for ETH since June. As a direct result of this massive increase in traffic, gas costs have risen considerably, as well. This culminated into new highs of 485 Gwi being reached on the 1st of September, and the number of daily transactions is only rising. Due to the massive price drop, coupled with projects like SUSHI plummeting down by 88%, the gas price currently stands 98 Gwei, which is by far more manageable.
Sushi Going Down, Changes Captains
It should be noted, however, that SushiSwap’s catastrophic market drop occurred thanks to its founder, Chef Nomi, who had sold his SUSHI holdings to Sam “SBF” Bankman-Fried. This unexpected takeover occurred on the 6th of September, 2020, and came just as the SUSHI token saw its catastrophic collapse in price. With SushiSwap now being in the hands of a respected figure such as SBF, the price has jumped back up.
A Mainstay Of Crypto
One of the few perks of being the second-largest cryptocurrency by market cap, standing at $39.7 billion, is that Ether has become almost as, if not just as, reliable as Bitcoin. As the market collapsed, both ETH and BTC went down together, and if those two currencies went down, everything that wasn’t a stablecoin went down as well, with exceptions, of course. The only contender behind both Bitcoin and Ether is Tether (USDT), holding a market cap of $14.1 billion.
It should be noted that Tether added to that market cap quite recently, pumping $3 billion in liquidity on the 1st of September, 2020.
Our holder distribution chart is a wonderful way to identify when whale holders are behaving inversely to the crowd. As the price was falling, 68 new whale addresses containing between 1K to 10K $ETH were created, as found by @satoshilatino! 🐋⬆️ https://t.co/gigCuWrcOv https://t.co/3qSj7egwzI
— Santiment (@santimentfeed) September 6, 2020