Recent months have seen a notable shift in how large amounts of Ethereum are distributed among wallets. Specifically, the number of addresses holding more than 100,000 ETH — often referred to as 'whales' — has decreased significantly.
This trend has not surprisingly raised significant concerns among ETH investors or analysts.
The decline of Ethereum whales and the rise of sharks
Recent data shows that the number of addresses holding more than 100,000 ETH has declined as the price of ETH has risen.
According to Alphractal, the number of whale addresses has declined from over 200 in 2020 to around 70 in 2025, now at its lowest level in nearly a decade.
Analysts often consider whale selling a bearish signal. However, looking at the number of 'shark' wallets that hold between 10,000 and 100,000 ETH provides a more complete picture.
In August, shark wallets increased from around 900 to over 1,000. This growth came amid a wave of Ethereum accumulation, driven by the strategic reserves of publicly listed companies.
João Wydson, founder of Alphractal, explained that the decline of whales holding more than 100,000 ETH does not significantly affect prices. Instead, mid-sized addresses — 'sharks' — are the real force to watch.
Wydson clarified: "But before you say 'this is bearish', remember: the same thing is happening with Bitcoin. Historical on-chain data shows that true holders often hold fewer coins, while the real price movers are mid-sized players — 'sharks'."
He added that large wallets often belong to exchanges or early adopters, and some may have lost access due to long periods of inactivity or security issues.
Over the past month, the accumulation of ETH has shifted supply to a new generation of sharks. Their active buying indicates stronger confidence in Ethereum's long-term value.
How the accumulation process of Ethereum is reshaping its holders
Data on the strategic reserves of ETH shows that companies and ETFs have accumulated 10.2 million ETH so far, worth $39.48 billion. This accumulation trend has accelerated since July.
The result is a clear shift in the structure of Ethereum holders. CryptoQuant data reveals that while the number of large investor wallets continues to reach new levels, the number of small wallets is steadily declining.
It appears that individual investors are exiting Ethereum. At the same time, institutions continue to accumulate the asset.
IT Tech analyst commented: "3 things that the charts show: Individual wallets have decreased to 8.5 million ETH - the lowest levels in years. The number of large holders has risen to 19.1 million ETH, the highest level ever. The price has not caught up yet, but the shift in ownership is clear. Who do you think will prove to be right in this cycle - individuals or whales?"
By combining Wydson's insights with those of IT Tech, it seems that institutional demand for ETH resembles a black hole, attracting supply from both exchange wallets and individual investors.
This increasing demand can transform ETH into a more mature asset. At the same time, it challenges the network to maintain sustainable long-term value growth.
