A staggering $50 billion in Ether (ETH) is now locked tight in accumulation addresses, marking a sharp 65% surge from early 2024. Burakkesmeci, a CryptoQuant analyst, dropped this jaw-dropping stat in an Oct. 20 note, hinting that whales and long-haul HODLers are hoarding like it’s going out of style.
Ether in the Vaults of Accumulators
By Oct. 18, 2024, over 19 million ETH found refuge in these accumulation wallets, where the investors stash their coins without even blinking at withdrawals. Burakkesmeci reported that this is a significant increase from the 11.5 million ETH that was tucked away back in January. That’s a wild leap, considering Ether’s price dances around $2,645 per coin, pushing the value of these stored-up coins to a whopping $50.2 billion.
Why are these bags swelling? Accumulation wallets tell the market what’s brewing underneath the surface. Long-term holders aren’t letting go, and that’s a signal of confidence. These cats think Ether’s future is still bright, so they’re sitting on their piles, waiting for the right moment.
Spot Ether ETFs: Fueling the Frenzy
Burakkesmeci isn’t shy about pointing out the big reason behind this ETH lockdown. Spot Ether ETFs launched in July, and they sparked a frenzy. He’s calling for more ETH to be stashed away in these accumulation wallets—saying the number could break 20 million by the end of 2024.
The hype is real, but not everything is rainbows and lollipops. Spot Ether ETFs had net outflows of $467.3 million since they opened the floodgates in July, according to Farside data. Traders got cold feet, but the long-termers seem unfazed.
Ethereum Supply Woes: Buterin Weighs In
While big-time investors load up on Ether, there’s an elephant in the room: the supply keeps ballooning despite Ethereum’s high usage. On Oct. 15, Ethereum’s brain, Vitalik Buterin, addressed the issue in his blog, saying single-slot finality might help lighten the load. He’s proposing this to speed up transaction times and keep things efficient.
Futures Market Surge and Trader Anxiety
But here’s where things get dicey. That same day, the Ether futures market saw its addressable size hit 5 million ETH for the first time, a 12% spike from just four weeks ago. This surge set off alarms. When leveraged ETH positions flood the scene, seasoned traders know that this could spell trouble, as it often signals a nasty correction looming on the horizon.
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