Ethereum Holders On The Rise: Accumulation Addresses Double Since January 2024—Report

Christian Encila

7 months ago

2 mins read

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With an impressive increase in coin acquisition, Ethereum aficionados are causing waves in the crypto space. From January’s 11.5 million, the most recent statistics reveal a solid 19 million ETH now stashed in long-term holding addresses, almost doubled, data from CryptoQuant shows.

With investors apparently increasing their bets, this huge surge points to a growing faith in Ethereum’s future. The crypto world is rife with conjecture since many estimate this count will reach 20 million by year’s end.

Clearly, there is a significant optimism in Ethereum’s long-term potential despite market swings, which leaves many wondering what is behind this increase in confidence and what this could mean for the scene of cryptocurrencies going forward.

A number of factors are encouraging institutional and individual investors to increase their holdings. Notably, the US Securities and Exchange Commission’s (SEC) approval of spot Ethereum exchange-traded funds (ETFs) has allowed new players to enter the market.

Spot ETFs Push Demand

More interest from mainstream investors has come from Ethereum spot ETF approval in great part. This indicates that both individual investors and institutions are getting ready for Ethereum’s long-term future. One researcher of cryptocurrencies even thinks that by the end of 2024, the ETH in accumulating addresses will equal the market value of the biggest companies worldwide.

ETH is currently trading at $2,729. Chart: TradingView

Furthermore, assuming Ethereum prices remain around $4,000, the analyst projects that if these patterns continue, the total value of ETH held in these addresses may reach $80 billion. At $2,737 right now, ETH has increased in value by over 3% over the last 24 hours and over 10% over the last week.

Staking Secures More Ethereum

The other main reason why less ETH is found in the market to trade is through the increase in Ethereum staking. According to Dune Analytics, staking contracts have locked up over 34.6 million ETH that equates to nearly 30% of the entire Ethereum supply, hence showing the statistics. This led to a lack of tokens for sale and therefore played a part in taming prices.

More price growth for ETH may be possible if the amount staked keeps increasing. The Ethereum market may experience less volatility and more long-term growth potential if there are less sell-side pressures.

The Price Outlook Is Good

The current price swings of Ethereum are primarily upward. ETH is currently trading above $2,700—a crucial support level—thanks to the support of its 50-day moving average. The 200-day moving average, which is $3,022, remains a barrier, though. If Ethereum is to experience consistent price growth, it will be imperative to break over that obstacle.

Ethereum’s long-term supporters are undoubtedly upbeat about the platform’s future, and the accumulating tendency along with staking and spot ETFs suggest that this confidence might not be unfounded. It will be interesting to see if Ethereum can overcome significant pricing obstacles, but one thing is certain: for the time being, the long-term picture looks promising.

Featured image from Pexels, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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