Unlike traditional assets, where each transaction is not recorded in a central database shared with the world, Ethereum and other cryptocurrencies are almost entirely transparent. One may not know who made a certain transaction or who owns an address, yet firms and individuals can all gain access to the metadata of every transaction that transpires on these networks.
It is a nearly inescapable fact that many have used to their advantage, analyzing the data to get an edge over their fellow investors and users.
Adam Cochran, a marketer-turned-angel/venture investor in the cryptocurrency space and an adjunct professor at Conestoga College, confirmed the importance of on-chain data on Apr. 28, when he released an over 100-part Twitter thread of remarks on the behaviors of Ethereum’s top 10,000 holders (by holding size).
His conclusion, “all things point up for ETH.”
In his analysis of Ethereum’s biggest “whales,” Cochran made 31 key findings. Save for some, practically all of them can be interpreted as bullish for the cryptocurrency. Some of the key findings are as follows:
- Whales are accumulating ETH: “Existing whales have increased their position by more than 4 percent in the past six months,” he wrote, which reportedly amounts to $550 million worth of ETH purchased. This sum is important because this rivals “the roughly $600 million in new capital influx Bitcoin was estimated to see last year.”
- Some of the world’s biggest institutions, Microsoft included, are stacking the crypto: In a similar vein, Cochran found that “wallets associated with major players such as JPMorgan Chase, Reddit, IBM, Microsoft, Amazon, and Walmart” are accumulating the cryptocurrency. We report on this facet of Cochran’s analysis is linked.
- Ethereum sell walls are being “chewed up”: The analyst observed that in the “past 6 months, exchange deposits grew ~5x from 11,000 a day to >55,000 a day.” This is normally indicative of a bear market, yet prices have…