This Cohort of Ethereum Whales Accumulates Record 57.35% of Supply

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As a seasoned analyst with over two decades of experience in global financial markets, I find myself increasingly intrigued by the current trends in Ethereum (ETH). The recent surge in whale accumulation and institutional inflows paints an optimistic picture for this digital asset.

In the surge of Ethereum this past week, there’s been a significant change in how its supply is distributed. The larger Ethereum wallets have become increasingly active in accumulating ETH, reaching an unprecedented high in terms of supply ownership. Meanwhile, holdings by mid-sized and smaller wallets have reached new lows.

Looking on the bright side, the influx of funds from institutions and past patterns indicate that Ethereum still has potential for more expansion, even with the unpredictable nature of the market.

Ethereum Whales Strengthen Holdings

As per the latest findings from Santiment, a significant number of Ethereum wallets holding over 100,000 ETH now control an unprecedented 57.35% of the total Ethereum supply. This staggering amount is roughly equivalent to $333.1 billion. Notably, there are 104 large wallets exhibiting this trend, indicating a growing sense of confidence among major Ethereum investors who persist in accumulating despite market fluctuations.

Conversely, medium-sized Ethereum wallets (holding between 100 and 100,000 ETH) have reached an all-time low in terms of their proportion, at 33.46%. Meanwhile, wallets with less than 100 ETH are at a nearly four-year minimum of 9.19%. Although the Ethereum network is seeing more DeFi and staking wallets, this pattern typically suggests a positive long-term forecast, according to its recent analysis by the on-chain analytical platform.

For a mature, nine-year-old asset like Ethereum, such sustained accumulation by key stakeholders suggests growing conviction and reduced sell pressure from whales, which often aligns with positive market sentiment over time.

The whale’s actions coincide with cryptocurrency reaching a new milestone, surging its YTD (Year-to-Date) increase to nearly 80%. It peaked at $4,106 on Monday and momentarily dropped to $4,020 during this writing. Despite this minor dip, the dominant altcoin is still 22% shy of its all-time high of $4,878 set in November 2021. Experts predict that it could potentially continue to grow substantially.

Room for Growth

Based on a recent analysis by crypto expert Ali Martinez, it appears that Ethereum’s price fluctuations tend to align with changes in long-term investor sentiment. During past market uptrends, Ethereum experienced significant, upwardly spiraling price increases when long-term investors moved into the “greed” phase. Currently, these long-term investors are only beginning to enter the “belief” stage, which suggests they are starting to feel positive about the asset’s future value potential.

Yet, it seems we’re not yet touching the exhilarating highs that usually kick off powerful price surges in Ethereum. If past trends persist, this may imply that a significant upward trend for Ethereum could still be forthcoming, as long-term investor confidence continues to build.

In the past seven weeks, there’s been a continuous trend of investments in Ethereum-based products, with a whopping $3.7 billion being poured in during this timeframe. Interestingly, a significant $1 billion was invested just last week, indicating sustained institutional interest and faith. Data from CoinShares supports these findings.

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2024-12-17 18:38