Ethereum Whales Continue Buying Spree as Price Recovery Gains Momentum

Ethereum Whales Continue Buying Spree as Price Recovery Gains Momentum

Ethereum, the king of altcoins, has been receiving sustained support from its whales as they continue their buying spree. Over the past few weeks, these whales have significantly increased their purchases, indicating their strong confidence in the future of Ethereum. On-chain data from Santiment reveals that the largest private wallets now hold a record-breaking 56.25 million ETH, which represents 46.8% of the crypto’s total circulating supply.

Price Action and Recovery

In the past 30 days, Ethereum has been trading within a range, with price action fluctuating between the higher end of $2,434 and the lower end of $2,127. However, the recent price recovery has instilled optimism in the market, and the crypto is now showing signs of renewed strength, currently building momentum above the $2,200 mark.

Influx of ETH into Whale Wallets

While the price of Ethereum has been experiencing theatrics, the whales have been capitalizing on the situation by buying even more ETH and adding it to their already substantial holdings. Consequently, the total ETH count in their wallets continues to reach new all-time highs. These whales have also been withdrawing their funds from exchanges, resulting in a significant decrease in ETH held on exchange-owned addresses. In fact, the ETH on exchanges has now dropped to its lowest level in over five years, indicating a strong shift towards self-custodial wallets.

According to the data provided by the on-chain analytics platform Santiment, top addresses now hold a staggering 65.71 million ETH, which represents 54.67% of the total circulating supply. Out of this figure, the top 150 self-custodial wallets account for 56.25 million ETH, while the top 150 exchange-linked wallets hold a mere 9.46 million ETH. This is close to the lowest level recorded since June 2018. The significant shift in ETH distribution suggests a growing trend of whales accumulating more ETH, further solidifying their confidence in the long-term bullishness of the cryptocurrency.

Anticipated Price Growth and ETF Approval

The crypto industry experienced a strong price surge in the last quarter of 2023, generating bullish sentiment for most cryptocurrencies. The ongoing whale acquisitions can be seen as a sign of anticipation for the continuation of this price growth throughout 2024. Whales are looking towards the imminent approval of Bitcoin and Ethereum spot ETFs in the US, which is expected to have a positive impact on the market. The current market capitalization of Ethereum stands at $268 billion, reflecting the growing interest and demand for the cryptocurrency.

The accumulation of Ethereum by these whales holds promising implications for the long-term price of the cryptocurrency. Their continuous buying power not only indicates their belief in the future price increase but also helps establish price support by reducing the overall supply of ETH available for sale. This reduction in supply, combined with the growing demand from retail investors, can potentially drive the price of Ethereum to new heights.

In addition to the whale accumulation, the liquid staking protocols have witnessed steady deposits throughout 2023. Data from DeFiLlama reveals that there are currently 12.3 million ETH ($27.585 billion) locked in ETH liquid staking derivatives. This significant increase of 80% from the 6.8 million ETH locked in January 2023 demonstrates the growing interest in staking Ethereum and earning rewards.

The sustained buying spree of Ethereum whales, coupled with the price recovery and growing interest in staking, paints an optimistic picture for the future of Ethereum. The heightened confidence displayed by these whales through their increased accumulation of ETH further solidifies the positive sentiment surrounding the cryptocurrency. As the market eagerly awaits the potential approval of Bitcoin and Ethereum spot ETFs in the US, it remains to be seen how these developments will impact the price and adoption of Ethereum. However, it is clear that the whales are positioning themselves strategically for the anticipated price growth in the coming year.

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