As a seasoned analyst with over two decades of experience in the financial markets, I find the current surge in Ethereum accumulation by long-term investors quite intriguing. The nearly doubling of Ether locked in accumulation wallets since the beginning of 2024 is a clear sign of growing confidence in the digital asset’s potential.
Approximately $50.2 billion in Ether is currently stored in accumulation wallets, which is almost twice as much as was being held at the beginning of 2024, as reported by a cryptocurrency expert.
According to a note published by CryptoQuant’s Burakkesmeci on October 20, the combined total of Ethereum stored in accumulation wallets exceeded 19 million by October 18, 2024.
11.5M ETH increase in accumulation addresses
When Ethereum (ETH) is being traded at around $2,645 during publication, this equates to roughly 50.2 billion dollars in total value.
Burakkesmeci pointed out that the quantity of Ethereum held in investment accounts, which are addresses belonging to long-term investors who haven’t made any withdrawals, has grown by approximately 65% since January. Initially, there were around 11.5 million Ether stored in these accounts.
According to Burakkesmeci, it’s expected that the number will surpass 20 million by the end of 2024. This prediction largely stems from the eagerness surrounding the upcoming launch of Ether ETFs in July.
According to Burakkesmici, it’s not only valuable for technology aficionados anymore; both institutions and individuals view it as a crucial element shaping the future of finance.
Since their debut on July 23, Ethereum-focused ETFs have experienced a total withdrawal of approximately $467.3 million as per data from Farside.
On October 15th, CryptoMoon noted that Ethereum investors feel disheartened due to the persistent growth in its supply, even though the network activity remains high.
Traders recent concerns over Ether future open interest
In a recent blog post, Ethereum founder Vitalik Buterin acknowledged this issue and suggested that improving transaction times through solutions like single-slot finality could help.
That very day, the total market for Ether futures contracts exceeded 5 million Ethers for the first time, marking a 12% growth when compared to four weeks earlier.
As an analyst, I found myself alarmed when I noticed a significant increase in the demand for leveraged Ethereum (ETH) positions. Historically, such surges have often been precursors to steep price corrections, which might suggest a potential warning sign.
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2024-10-20 09:33