Ethereum, the king of altcoins, has been gaining significant support from its largest holders, commonly known as whales. These influential players in the cryptocurrency market have been on a relentless buying spree, driving the price of Ethereum to new heights. The increasing accumulation of ETH by these whales hints at their confidence in the future growth of the cryptocurrency.
Recent on-chain data from Santiment reveals that Ethereum’s largest private wallets now hold a record-breaking 56.25 million ETH, which accounts for 46.8% of the total circulating supply. This considerable amount of ETH being held by whales indicates their strong belief in the long-term potential of Ethereum. It also signifies their intention to reduce the available supply in the market, establishing a supportive price floor.
Decreased ETH Holdings on Exchanges
Coinciding with the increased accumulation by Ethereum whales, there has been a notable decrease in ETH holdings on exchanges. The on-chain analytics platform Santiment reports that a staggering 65.71 million ETH (54.67% of total supply) is now held by top addresses. Out of this figure, 56.25 million ETH belongs to the top 150 self-custodial wallets, while only 9.46 million ETH remains in exchange-owned wallets – the lowest level since June 2018.
The recent surge in whale acquisitions can be attributed to several factors within the cryptocurrency market. The last quarter of 2023 witnessed a significant price rally, bolstering confidence in various cryptocurrencies. Furthermore, the anticipation of the approval of Bitcoin and Ethereum spot ETFs in the United States has further fueled the optimism surrounding the price growth of Ethereum in 2024. These whales foresee a continuation of the upward trajectory in Ethereum’s value and are positioning themselves accordingly.
The continuous accumulation of Ethereum by these influential holders is a positive indicator for the long-term price performance of the cryptocurrency. Their actions signal a belief in the sustained growth of Ethereum, which instills confidence in other market participants. Additionally, this buying pressure from whales reduces the available supply of ETH in the market, effectively supporting the price and making it less vulnerable to drastic fluctuations.
Case Study: The Ongoing ETH Buying Spree
One prominent Ethereum whale, identified as ‘0x931’, recently purchased 21,192 ETH worth approximately $48 million. With an average purchase price of $2,265, this acquisition brings the whale’s total ETH holdings since January 2023 to an impressive 79,500, valued at $36.84 million in unrealized profit. Such substantial investments by individual whales reinforce the prevailing bullish sentiment surrounding Ethereum.
Increasing Interest in Liquid Staking
Apart from direct accumulation, Ethereum whales have been participating in liquid staking protocols. According to data from DeFiLlama, 12.3 million ETH (worth $27.585 billion) is currently locked in ETH liquid staking derivatives. This represents an 80% growth compared to January 2023, when only 6.8 million ETH was locked. The shift towards liquid staking demonstrates the whales’ interest in earning additional rewards while still holding their Ethereum assets.
The confidence displayed by Ethereum whales through their continuous accumulation of ETH signals a positive outlook for the long-term price growth of the cryptocurrency. These influential players in the market are positioning themselves strategically, anticipating further price increases in the coming years. As the supply of ETH on exchanges diminishes, the likelihood of significant price volatility decreases, providing stability to the Ethereum market. However, potential investors should conduct thorough research and exercise caution when making investment decisions, as the cryptocurrency market inherently carries risks.