Ethereum's Concentration Grows as zkEVM Protocol Scroll Launches

Ethereum’s wealthiest addresses now hold 32.3% of the circulating supply, marking a level of concentration not seen since 2016.
Large transactions exceeding $1 million have recently surged, but their impact on Ethereum’s market dynamics remains uncertain.

In a recent revelation by Santiment, a well-known crypto analysis entity, Ethereum (ETH) has witnessed a concentration of wealth not seen since 2016. Addresses holding at least 1 million ETH now control a substantial 32.3% of the circulating supply. Moreover, large transactions exceeding the $1 million mark have experienced their second peak day in just five weeks. This concentration trend raises questions about its potential impact on Ethereum’s market dynamics.

According to data from IntoTheBlock, ETH concentration has grown by 0.15%, with a staggering 45% of Ethereum’s total supply now residing in large wallet addresses. Despite these expansive transactions, Ethereum’s market performance remains somewhat uncertain. While the coin has appreciated by 0.9% over the past week, it also witnessed a 0.8% dip in the last day.

In terms of holder sentiment, the Ethereum community appears divided, with 48% experiencing losses, 49% in profit, and only 3% at a breakeven point. This diversity of positions adds an interesting layer to the evolving Ethereum landscape.

zkEVM Protocol Scroll: Ethereum’s New Ally

Amidst this scenario, Ethereum’s journey of progress continues with the significant mainnet launch of the layer-2 zkEVM protocol Scroll. What Scroll brings to the table is compatibility with the Ethereum Virtual Machine (EVM) for smart contracts. After over two years of rigorous development, Scroll’s launch is celebrated as a transformative move, expected to catalyze broader adoption of Ethereum.

The Scroll testnet has been a hotbed of innovation, hosting more than 100 projects, ranging from decentralized finance (DeFi) platforms to cutting-edge Web3 gaming initiatives.

Haichen Shen, Scroll’s esteemed co-founder, highlighted the project’s unwavering commitment to security standards. Scroll has consistently embraced a comprehensive approach to security, benefitting from insights provided by a specialized in-house team, conducting thorough audits, and cherishing the open-source ethos since its inception.

Sandy Peng, another key figure and co-founder at Scroll, emphasized their focus on empowering developers. The aim is to create blockchain solutions that solidify Web3’s presence in real-world scenarios, driving user adoption and fostering collective progress.

Since its mainnet launch, Scroll has garnered deposits totaling 2,030 ETH, reflecting the community’s confidence and anticipation in its potential.