The amount of Ethereum (ETH) held in accumulation wallets as of October 18, 2024 has seen a remarkable increase of 65% since the beginning of the year, surpassing 19 million ETH. The increase in accumulation of ETH has been attributed to the show of trust and growing confidence among long-term investors in the cryptocurrency market, according to a recent analysis by Burakkesmeci, a contributor at CryptoQuant.
The total value of Ethereum locked in these accumulation wallets now stands at approximately $50.2 billion, based on current market prices around $2,645 per ETH. The significant rise from around 11.5 million ETH at the start of 2024 indicates a robust trend toward holding rather than trading among investors.
These wallets are typically associated with long-term investors who are not actively trading their holdings. The increase in ETH stored in these addresses is seen as a positive indicator of confidence in Ethereum’s future prospects.
The anticipated launch of spot Ether exchange-traded funds (ETFs) has generated excitement within the market, with believe that these products could attract institutional investment and further legitimize Ethereum as an asset class.
Despite fluctuations in price, the overall sentiment towards Ethereum remains bullish. The recent uptick in whale activity—large holders accumulating significant amounts of ETH—reinforces this optimism.
Ongoing upgrades to the Ethereum network, including enhancements aimed at scalability and efficiency, have bolstered investor confidence. As Ethereum transitions to a more sustainable proof-of-stake model, many view it as a more attractive investment.
Burakkesmeci forecasts that the total amount of ETH held in accumulation wallets could exceed 20 million by the end of 2024.
While there have been net outflows from spot Ether ETFs totaling approximately $467.3 million since their launch on July 23, this has not deterred long-term holders from accumulating more ETH.
The accumulation trend suggests that investors are positioning themselves for potential price increases, which could lead to upward momentum in the crypto market overall.
With over $50 billion now locked away and projections indicating further increases, Ethereum is poised to play a crucial role in shaping the future of digital finance.