Ethereum Whales Continue to Accumulate: What Does It Mean for the Crypto Market?

Ethereum Whales Continue to Accumulate: What Does It Mean for the Crypto Market?

The recent surge in the price of Ethereum has caught the attention of investors and analysts alike. While price volatility has been the norm in the cryptocurrency market, the sustained support from Ethereum whales is a positive sign for the future of the king of altcoins. On-chain data from Santiment reveals that Ethereum’s largest private wallets now hold a record-breaking 56.25 million ETH, which accounts for 46.8% of the total circulating supply of the cryptocurrency. This increase in whale buys has been observed in the past few weeks, indicating their confidence in the potential growth of Ethereum.

Amidst the price movements and market uncertainties, Ethereum whales have been actively purchasing more ETH and adding it to their wallets. This trend has led to an accumulation of Ethereum in these large addresses, with a total of 65.71 million ETH, representing 54.67% of the total circulating supply. Out of this figure, 56.25 million ETH belongs to the top 150 self-custodial wallets, while the top 150 exchange-linked wallets hold 9.46 million ETH, nearing their lowest level since June 2018.

One interesting observation is the decrease in ETH held on exchange-owned addresses, which has dropped to its lowest level in over five years. This suggests that whales are withdrawing their ETH from exchanges, possibly to hold it for the long term or for other decentralized finance opportunities. The reduction of ETH available for sale on exchanges can create a supply scarcity, contributing to the potential for price appreciation.

After experiencing a recent price recovery, Ethereum is now showing signs of building strong momentum above $2,200. The sustained buying activities of Ethereum whales provide support for the long-term outlook of the cryptocurrency. These large-scale investors signal their belief in the continued growth of Ethereum by accumulating more ETH. Additionally, their buying power helps establish price support by reducing the available supply of ETH for sale.

It is worth noting that Ethereum whales have been increasing their holdings amidst the anticipation of approving Bitcoin and Ethereum spot Exchange-Traded Funds (ETFs) in the United States. If these regulatory approvals materialize, they could potentially drive further price growth in 2024. The overall market capitalization of Ethereum currently stands at an impressive $268 billion, highlighting its significant position in the crypto market.

Aside from whale accumulation, Ethereum has shown other signs of strength and growth. One notable development is the increase in deposits to liquid staking protocols throughout 2023. Data from DeFiLlama reveals that 12.3 million ETH, equivalent to $27.585 billion, are currently locked in ETH liquid staking derivatives. This represents an 80% growth compared to the 6.8 million ETH locked in January 2023. The rise of liquid staking provides Ethereum holders with an opportunity to earn rewards while contributing to the security and decentralization of the network.

The continuous accumulation of Ethereum by whales and the decrease in ETH held on exchanges indicate strong confidence and support for the cryptocurrency’s future. The sustained buying activities of these large-scale investors not only contribute to the potential for price appreciation but also establish a solid long-term foundation for Ethereum. As the market awaits the regulatory approval of Bitcoin and Ethereum ETFs in the United States, all eyes are on Ethereum as it continues to cement its position as the leading altcoin in the crypto industry. Nevertheless, investors should conduct thorough research and exercise caution before making any investment decisions, as the cryptocurrency market inherently carries risks.

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell, or hold any investments. Investing in digital assets comes with inherent risks, and individuals are advised to conduct their own research and make informed decisions. The use of information from this article is solely at the reader’s own risk.


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