According to Cointelegraph: Ethereum is experiencing a significant increase in long-term holding activity, with accumulation wallets—addresses with no prior withdrawals—growing by 65% since the start of 2024. As of October 18, these wallets collectively hold more than 19 million ETH, according to data from CryptoQuant. At current market prices of $2,645 per ETH, this represents over $50.2 billion in value locked by long-term investors.
11.5 Million ETH Added to Accumulation Addresses in 2024
At the beginning of 2024, accumulation wallets held around 11.5 million ETH. The massive increase reflects rising confidence in Ethereum’s long-term value, especially with institutional investors and individuals seeing ETH as more than just a platform for tech enthusiasts. Burakkesmeci, a contributor at CryptoQuant, predicted that the total amount of ETH in these addresses could exceed 20 million ETH by the end of the year.
Burakkesmeci highlighted the anticipation around the launch of spot Ether ETFs in July as one of the factors behind this accumulation. However, despite these expectations, spot Ether ETFs have seen net outflows of $467.3 million since their launch, according to Farside data.
What Does This Mean for Ethereum’s Future?
The accumulation of ETH in these long-term wallets is often viewed as a strong indicator of confidence in the asset’s long-term prospects. As institutional adoption grows, Ethereum is increasingly being seen as a foundational element of the future financial landscape.
However, some traders are concerned that the rising demand for leveraged ETH positions may signal an impending price correction. As the aggregate Ether futures market reached 5 million ETH for the first time on October 15, some analysts are sounding alarm bells. Historically, a surge in open interest in ETH futures has been followed by price corrections.
In conclusion, while Ethereum continues to grow in long-term accumulation and institutional interest, traders should remain cautious of potential volatility in the coming months. As the year progresses, all eyes will be on whether Ethereum can maintain its upward momentum or if a market correction looms.
