As of mid-October, more than $50 billion worth of Ether (ETH) is now locked in accumulation addresses, a 65% rise from the beginning of 2024. According to data from CryptoQuant analyst Burakkesmeci, these accumulation wallets—typically held by long-term investors with no prior withdrawals—have swelled to over 19 million ETH, up from 11.5 million in January.
Accumulation addresses are viewed as a key signal for market confidence, particularly in the case of Ethereum, where they reflect a growing belief in the asset’s long-term value. With Ether currently trading at $2,645, this translates to around $50.2 billion worth of ETH locked away. Burakkesmeci projects that this figure could exceed 20 million ETH by the year’s end.
Spot Ether ETFs and Ethereum’s Future
Much of the increased accumulation has been linked to the anticipated growth in demand for spot Ether ETFs, which launched in July 2024. Despite initial net outflows of $467.3 million since their debut, analysts like Burakkesmeci believe that both institutions and individual investors are now viewing Ether as a core asset in the evolving digital finance space.
“It’s no longer just for tech enthusiasts—institutions and individuals see it as a key part of the financial future,” Burakkesmeci stated.
This accumulation trend underscores a broader market confidence in Ethereum’s potential to further cement itself as a foundational asset within the crypto and fintech sectors, especially as more regulated financial products become available.
Concerns Over Ether Futures Surge
Alongside the rise in accumulation, traders have expressed concerns over the increasing demand for leveraged positions in ETH futures. On October 15, the total Ether futures market surpassed 5 million ETH for the first time, marking a 12% rise in open interest over the past month.
Many market participants view this spike in leveraged activity as a potential warning sign, with some fearing it could precede a sharp price correction. Ethereum founder Vitalik Buterin recently acknowledged these concerns, proposing solutions such as single-slot finality to improve transaction speeds and alleviate network stress.
Despite these challenges, the long-term accumulation of Ether suggests growing investor confidence in the asset’s role in the future of decentralized finance.
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