As an experienced analyst, I believe this trend of increasing addresses holding large amounts of Ethereum is a positive sign for the world’s second-largest cryptocurrency. The surge in demand from wealthy investors and institutional players could potentially lead to a much-needed bull run for Ethereum.
The unexpected actions taken by the SEC last month have led to a significant increase in the number of Ethereum ETF holding wallets.
This trend might be indicative of a significant comeback for the largest altcoin in the world, which has faced challenges in breaking through the $4,000 barrier.
Wealthy Investors Accumulate ETH
Over the past three weeks, there has been a 3% increase in the count of Ethereum wallets containing 10,000 or more Ether. This figure is often viewed as a sign of growing institutional investment and accumulation by wealthy Ethereum investors and high net worth individuals.
Popular crypto analyst Ali Martinez tweeted,
“Over the past three weeks, there’s been a 3% rise in the count of Ethereum wallets containing 10,000 or more dollars worth of ETH. This growth suggests a significant surge in demand for Ethereum.”
A significant rise in the number of Ethereum addresses holding large amounts of ETH may indicate heightened buying interest and demand from wealthy investors. This situation could foreshadow an impending Ethereum bull market, as whales amassing substantial quantities of Ethereum is often a harbinger of price increases.
As a researcher studying the developments in the cryptocurrency market, I’m excited to share that just last month, a significant milestone was reached: The US Securities and Exchange Commission (SEC) approved the first-ever spot Ethereum Exchange-Traded Funds (ETFs). A total of eight ETF proposals based on Ethereum were given the green light by the financial regulatory body. These proposals came from well-known firms such as Grayscale, VanEck, ARK Invest, Franklin Templeton, Fidelity, BlackRock, 21Shares, and Invesco Galaxy.
As a financial analyst, I can tell you that these listings represent a significant opportunity for conventional investors to invest in cryptocurrencies through regulated channels. This development is anticipated to attract new capital and increase the accessibility and liquidity of cryptocurrencies in the mainstream market. Consequently, the whale community, which includes large-scale investors, is optimistic about this progress, as indicated by their accumulation activities.
Ethereum Scarcer Than Bitcoin on Exchanges
According to Glassnode’s latest data, the trend toward decreasing availability of Bitcoin and Ethereum on centralized exchanges is strengthening. Specifically, only about 11.73% of Bitcoin’s entire stockpile and a mere 10.56% of Ethereum’s total supply are currently held on major trading platforms.
This implies that investors are choosing to keep their cryptocurrencies out of exchange wallets, suggesting a prevailing trend towards buying and hoarding.
When the supply of a cryptocurrency like Ethereum or Bitcoin on exchanges decreases, the remaining liquidity is quickly snapped up by buyers. This can lead to an increase in price due to the higher demand relative to available supply. At present, Ethereum seems to be more scarce than Bitcoin in terms of its availability on exchanges.
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2024-06-10 14:24