Ethereum whales have been significantly increasing their accumulation of ETH, with the top 150 self-custodial wallets now holding a record 56.25 million ETH. This surge in whale activity has coincided with a recovery in Ethereum's price and a decrease in ETH held on exchange-owned addresses. The ongoing accumulation suggests optimism for long-term price growth, with potential ties to the awaited approval of Bitcoin and Ethereum spot ETFs in the US. Additionally, a particular Ethereum whale, '0x931', recently made a substantial purchase of 21,192 ETH, adding to its total buys of 79,500 ETH since January 2023 and sitting on significant unrealized profit. Furthermore, liquid staking protocols have seen a notable increase, with 12.3 million ETH currently locked in ETH liquid staking derivatives, representing an 80% growth from January 2023.
Our analysis of the situation
As Ethereum continues to make waves in the world of cryptocurrency, the actions of its largest holders—affectionately referred to as whales—have been a hot topic of conversation. Recent data from Santiment has revealed some fascinating insights into the behavior of these market giants.
Ethereum whales have been making a big splash in the market, accumulating an unprecedented amount of ETH in their wallets. In fact, their holdings have reached an all-time high of 56.25 million ETH, comprising nearly half of the total circulating supply of the cryptocurrency. It's clear that these whales are putting their considerable weight behind Ethereum, signaling their confidence in its long-term potential.
Despite the recent price fluctuations, Ethereum is showing resilience and is now on the path to recovery. The crypto's price has been hovering between $2,434 and $2,127 over the past month, but it's now gaining momentum above the $2,200 mark. This upward trend is coinciding with a flurry of whale activity, as these influential investors continue to accumulate ETH and withdraw from exchanges.
The surge in whale accumulation may be linked to the optimistic outlook for cryptocurrencies in 2024. With the potential approval of Bitcoin and Ethereum spot ETFs in the US, whales are positioning themselves to ride the anticipated wave of price growth. Their sustained buying power not only reflects their confidence in Ethereum's future but also contributes to establishing a strong support level for its price by reducing the available supply of ETH.
One particularly noteworthy example comes from an Ethereum whale known as '0x931', who recently made a substantial purchase of 21,192 ETH, equivalent to around $48 million. This bold move has brought the whale's total ETH holdings to 79,500 since January 2023, resulting in an impressive unrealized profit of $36.84 million.
In parallel with these developments, the use of liquid staking protocols has surged in popularity, with 12.3 million ETH (approximately $27.585 billion) currently locked in ETH liquid staking derivatives. This represents an 80% increase from the 6.8 million ETH locked in January 2023, further underscoring the growing interest in Ethereum amongst investors.
The accumulation of ETH by these influential whales and the rising popularity of liquid staking protocols paint a bullish picture for Ethereum's future. As these giants of the crypto world continue to make waves, it's clear that Ethereum is poised to remain a dominant force in the market.
[Featured image from Pixabay]
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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