The Rising Tide of Ethereum Whales

The Rising Tide of Ethereum Whales

The Ethereum market has been witness to a buying spree by whales, indicating their unwavering support for the king of altcoins. These large-scale purchases have surged in recent weeks, as on-chain data from Santiment reveals that Ethereum’s largest private wallets currently hold a record-breaking 56.25 million ETH, comprising 46.8% of the crypto’s total circulating supply.

Building Momentum amid Price Volatility

While Ethereum has been trading within a range, fluctuating between $2,127 and $2,434 in the past 30 days, it has recently shown signs of recovery. The crypto is now gaining strong momentum above the $2,200 mark. This resurgence in price has prompted Ethereum whales to further increase their holdings, consistently pushing the overall count to new all-time highs.

Simultaneously, these Ethereum whales have been withdrawing their holdings from exchanges. As a result, the amount of ETH stored in exchange-owned addresses has plummeted to its lowest level in over five years. According to on-chain analytics from Santiment, over 65.71 million ETH, or 54.67% of the total circulating supply, is now held by top addresses. Out of this significant figure, the top 150 self-custodial wallets possess an impressive 56.25 million ETH. In contrast, exchange-linked wallets belonging to the top 150 now only hold 9.46 million ETH, approaching their lowest level since June 2018.

Whale acquisitions within the crypto industry continue to fuel optimism for future price growth. The bullish sentiment is primarily attributed to the imminent approval of Bitcoin and Ethereum spot exchange-traded funds (ETFs) in the United States. The anticipated approval of these financial instruments in 2024 is expected to further drive up the price of Ethereum, consequently bolstering the investments made by these influential Ethereum whales.

Market Impact of Whale Accumulation

The accumulation of Ethereum by these significant players in the market serves as a positive indicator for long-term price prospects. Whales’ increased buying power aids in establishing price support by reducing the available supply of ETH for sale. By effectively diminishing sell pressure, they contribute to the overall stability and potential growth of Ethereum.

Recent events have shed light on remarkable whale transactions within the Ethereum ecosystem. One notable event involved an Ethereum whale with an identification of ‘0x931’, who purchased 21,192 ETH, amounting to approximately $48 million. This acquisition brings the whale’s total purchases since January 2023 to an impressive 79,500 ETH, now valued at $36.84 million in unrealized profit.

Surge in Liquid Staking

The rise in liquid staking protocols has been another notable trend in the Ethereum market. Throughout 2023, steady deposits into these protocols have taken place. According to data from DeFiLlama, the amount of ETH locked in ETH liquid staking derivatives stands at 12.3 million ETH, equivalent to $27.585 billion. This represents an 80% growth compared to the 6.8 million ETH locked in January 2023.

Ethereum whales continue to exert their dominance in the market, accumulating vast amounts of ETH and reinforcing their belief in the cryptocurrency’s growth potential. The recent surge in whale buying activities, coupled with the withdrawal of holdings from exchanges, speaks volumes about their confidence in Ethereum’s future prospects. As the market braces for the arrival of Bitcoin and Ethereum spot ETFs, the stage is set for further price appreciation, potentially rewarding the endeavors of these influential Ethereum whales. However, it is important for individual investors to conduct thorough research and exercise caution when making investment decisions in the volatile cryptocurrency market.


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