Ethereum whales have been exhibiting a strong show of support for the king of altcoins through their sustained buying spree. Recent on-chain data from Santiment reveals that Ethereum’s largest private wallets now hold a record-breaking 56.25 million ETH, which represents a whopping 46.8% of the crypto’s total circulating supply. This surge in whale buys has become even more pronounced in the past few weeks, highlighting the whales’ unwavering confidence in Ethereum’s future prospects.
Increasing Momentum and Price Recovery
Despite Ethereum’s price volatility, the currency has recently shown signs of recovery. After a successful bout of price recovery, Ethereum is now steadily building strong momentum above $2,200. This upward price movement aligns with the increased buying activity of Ethereum whales, who continue to accumulate more ETH into their wallets. As a result, ETH stored on exchange-owned addresses has dropped to its lowest levels in over five years, indicating a significant shift in whale behavior.
The continued accumulation of Ethereum by large whale wallets serves as a positive indicator for the long-term price of the cryptocurrency. This accumulation signifies that whales believe the price will continue to rise, establishing a strong foundation of price support. By reducing the supply of ETH available for sale, these influential whales aid in maintaining the price stability of Ethereum.
The Imminent Approval of Bitcoin and Ethereum Spot ETFs
One potential reason behind the sustained whale acquisitions is the anticipated approval of Bitcoin and Ethereum spot exchange-traded funds (ETFs) in the United States. The prospect of these ETFs receiving regulatory authorization serves as a major drive for increased buying activity. If approved, these ETFs have the potential to attract a significant influx of institutional and retail investors, further bolstering the price growth of Ethereum in 2024.
A Closer Look at Whale Activity
An Ethereum whale, known as ‘0x931’, recently made a massive purchase of 21,192 ETH, worth approximately $48 million at an average price of $2,265. With this acquisition, the whale has now accumulated a total of 79,500 ETH since January 2023, resulting in an unrealized profit of $36.84 million. This significant transaction showcases the confidence and buying power of Ethereum whales.
In addition to the increased accumulation by whales, Ethereum’s liquid staking derivatives have also experienced steady growth throughout 2023. Data from DeFiLlama reveals that currently, 12.3 million ETH ($27.585 billion) are locked in ETH liquid staking derivatives, marking an 80% growth compared to 6.8 million ETH locked in January 2023. This surge in locking ETH demonstrates the community’s interest in participating in Ethereum’s staking ecosystem.
As Ethereum’s whale population continues to expand their holdings, it serves as a positive sign for the cryptocurrency’s long-term price growth. The sustained buying spree, coupled with the decline in ETH stored on exchanges, suggests that Ethereum whales anticipate further price increases and aim to reduce the available supply on the market. With potential regulatory approval of Bitcoin and Ethereum ETFs on the horizon, the outlook for Ethereum remains optimistic. However, as with any investment, conducting thorough research and understanding the associated risks is crucial.