Roughly 70 New ETH Whales Were Born During 30% Price Drop This Month
- 68 new 'whales' purchased at least 1000 $ETH tokens when the Ether price dipped at the beginning of September.
Indeed, “Santiment’s holder distribution chart shows that as #Ethereum was falling, there was a spike in the number of addresses with millions of dollars in #ETH, colloquially known as whales,” Martinez wrote, cited by CoinTelegraph. “Roughly 68 new whales holding 1K to 10K $ETH have joined the network in the past 3 days.”
‘@santimentfeed‘s holder distribution chart shows that as #Ethereum was falling, there was a spike in the number of addresses with millions of dollars in #ETH, colloquially known as whales.
— Ali Martinez (@ali_charts) September 6, 2020
Roughly 68 new whales holding 1K to 10K $ETH have joined the network in the past 3 days. pic.twitter.com/HucYyMPQ2p
And indeed, the price of Ethereum has dropped significantly over the course of the last week. After peaking at $486 last Wednesday, ETH dropped as low as $320 before recovering to roughly $346, where it sat at press time.
Why Is the Price of ETH Dropping?
The reason behind the drop has been cited as the increased level of network congestion that caused gas prices to rise and slowed transaction times.
Last week, Finance Magnates reported that increased levels of congestion on the Ethereum network have called the network’s future viability as the backbone of the DeFi ecosystem into question.
Indeed, Dave Parkinson, the Chief Operating Officer of Lamourie Public Relations, told Finance Magnates that “the number of DeFi projects attempting to run simultaneously on the Ethereum network has inevitably exposed the problems with scalability, the way CryptoKitties did a few years ago.”
However, at the same time Ethereum founder, Vitalik Buterin has said that the solutions to Ethereum’s scalability problems do exist. It’s just that people are not using them. “To those [saying that] ‘gas fees are too high’, my answer to that is ‘well then more people should be accepting Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times. One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times. Read this Term directly through zksync/loopring/OMG’,” Vitalik wrote on Twitter.
“Seriously, scaling to 2500+ TPS for simple-payments applications is here, we just need to... use it.”
However, Vitalik has also previously said that up to a certain point, Ethereum users and developers will simply have to adjust to the fact that gas prices may be higher from now on.
“I do think that contract devs will have to change to adjust to the new reality; the things that you optimize for will be different than they were in the last few years,” he wrote on reddit.
“Particularly, minimizing the amount of state that any single transaction needs to read or access is going to become extremely important, but minimizing eg. the amount of computation or the amount of transaction data used (especially the data) will continue to become less and less important.”
Indeed, “Santiment’s holder distribution chart shows that as #Ethereum was falling, there was a spike in the number of addresses with millions of dollars in #ETH, colloquially known as whales,” Martinez wrote, cited by CoinTelegraph. “Roughly 68 new whales holding 1K to 10K $ETH have joined the network in the past 3 days.”
‘@santimentfeed‘s holder distribution chart shows that as #Ethereum was falling, there was a spike in the number of addresses with millions of dollars in #ETH, colloquially known as whales.
— Ali Martinez (@ali_charts) September 6, 2020
Roughly 68 new whales holding 1K to 10K $ETH have joined the network in the past 3 days. pic.twitter.com/HucYyMPQ2p
And indeed, the price of Ethereum has dropped significantly over the course of the last week. After peaking at $486 last Wednesday, ETH dropped as low as $320 before recovering to roughly $346, where it sat at press time.
Why Is the Price of ETH Dropping?
The reason behind the drop has been cited as the increased level of network congestion that caused gas prices to rise and slowed transaction times.
Last week, Finance Magnates reported that increased levels of congestion on the Ethereum network have called the network’s future viability as the backbone of the DeFi ecosystem into question.
Indeed, Dave Parkinson, the Chief Operating Officer of Lamourie Public Relations, told Finance Magnates that “the number of DeFi projects attempting to run simultaneously on the Ethereum network has inevitably exposed the problems with scalability, the way CryptoKitties did a few years ago.”
However, at the same time Ethereum founder, Vitalik Buterin has said that the solutions to Ethereum’s scalability problems do exist. It’s just that people are not using them. “To those [saying that] ‘gas fees are too high’, my answer to that is ‘well then more people should be accepting Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times. One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times. Read this Term directly through zksync/loopring/OMG’,” Vitalik wrote on Twitter.
“Seriously, scaling to 2500+ TPS for simple-payments applications is here, we just need to... use it.”
However, Vitalik has also previously said that up to a certain point, Ethereum users and developers will simply have to adjust to the fact that gas prices may be higher from now on.
“I do think that contract devs will have to change to adjust to the new reality; the things that you optimize for will be different than they were in the last few years,” he wrote on reddit.
“Particularly, minimizing the amount of state that any single transaction needs to read or access is going to become extremely important, but minimizing eg. the amount of computation or the amount of transaction data used (especially the data) will continue to become less and less important.”