Chainalysis, a Blockchain analyst was the first to discover that only 376 individuals from Whales own 33% of ether. This was discovered on May 1. Although this does not sound fair, it must be noted that fewer people owned a lot of what had been released back in 2016 and 2017.
Another study showed that the owners did nothing to really improve on the demand for the currency. They only affected daily trading on days when they made a huge sale in the market.
Whales are currently among the top 500 people that have cryptocurrency. Yet, they contribute only about 7% to daily transactions.
After other studies, it was found out that 60% of Whales who had the cryptocurrency did not participate in trading. Thus, only about 5-18% of the money they own go into the market.
Chainalysis further used the VAR (Vector Autoregression Model) to monitor the price of Ethereum and the discovery was that it rises and falls the same way Bitcoin does. For example, the price of Bitcoin rose by 1% yesterday, Ethereum did the same by 1.1%.
The VAR model also revealed what happens when Whales exchanged money. It was discovered that when they sent money to exchanges, the volatility of the market changed but the price remained the same. On the other hand, receiving Ether from them had no effect on the price or volatility.
In conclusion, Chainalysis said:
“These preliminary findings are consistent with the literature on stock market prices and volatility,” Chainalysis concluded. “Academics have found that large anomalous fluctuations in traded volumes of particular stocks, notably the S&P 500, tend to impact volatility and not price levels.”