David Edwards
According to fresh on-chain statistics from Nansen, Ethereum (ETH) whales have been covertly amassing the asset despite its sluggish market performance. Large investors who hold between 10,000 and 100,000 ETH have seen their balances climb by more than 12% in early 2025, despite the fact that ETH has dropped more than 44% year-to-date (YTD) and is currently priced at about $1,900.
Smaller holders and ordinary investors have been cutting back on their holdings in the interim. According to Nansen’s data, wallets with 1,000–10,000 ETH have only increased by a meager 3% year-to-date, indicating a difference in market sentiment between institutional and retail participants.
Ethereum Deals with Increasing Competition and Declining Network Activity
The general network activity of Ethereum seems to be slowing down, notwithstanding the tendency of accumulation among major investors. Since early 2024, median gas costs have decreased by almost 50 times, indicating a decline in the need for on-chain transactions. Nansen further points out that some Ethereum activity has moved to rival ecosystems, specifically layer-2 solutions like Solana (SOL).
Additionally, Ethereum is under increasing pressure from competitors. Nansen analysts warn that the network risks becoming a “jack of all trades but master of none,” as it struggles to differentiate itself against rivals such as Bitcoin (BTC), Solana (SOL), and Celestia (TIA).
Long-Term Market Prospects for Ethereum Remain Uncertain
Whales are still hoarding ETH, but it’s unclear what the market will do in general. Ethereum has notably underperformed during both rallies and downturns, according to on-chain data. Although no obvious short-term catalysts have surfaced to affect market sentiment, Nansen analysts contend that “significant changes” would be required for ETH to buck its long-term downward trend against BTC.
Investors continue to keep an eye out for indications of a possible trend reversal as Ethereum negotiates growing competition and changing market conditions.
