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With the incredible increase in coin purchases, Ethereum enthusiasts are making waves in the cryptocurrency space. Starting at 11.5 million in January, the latest statistics reveal that there are now 19 million ETH stashed in long-term holding addresses, and it has nearly doubled. Showing data from CryptoQuant.
With investors seemingly increasing their bets, this huge increase indicates growing confidence in Ethereum’s future. The world of cryptocurrencies is full of speculation as many estimate that this number will reach 20 million by the end of the year.
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It is clear that there is great optimism about Ethereum’s long-term potential despite the market volatility, leaving many wondering what is behind this increase in confidence and what it could mean for the cryptocurrency landscape in the future.
There are a number of factors that encourage institutional and individual investors to increase their holdings. It is worth noting that the US Securities and Exchange Commission (SEC) approval of Ethereum spot trading funds (ETFs) has allowed new players to enter the market.
Spot ETFs drive demand
More interest from mainstream investors has come from the ETF’s immediate approval in large part. This suggests that both retail and institutional investors are preparing for Ethereum’s long-term future. One cryptocurrency researcher even believes that by the end of 2024, the ETH in accumulated addresses will equal the market capitalization of the largest companies around the world.
Furthermore, assuming that Ethereum prices will remain at around $4,000, the analyst predicts that if these patterns continue, the total value of Ethereum held in these addresses could reach $80 billion. At $2,737 currently, the value of ETH has increased more than 3% over the past 24 hours and more than 10% over the past week.
Staking secures more Ethereum
The other main reason why there is less amount of ETH on the market to trade is through Increase in Ethereum share. According to Dune Analytics, staking contracts have held over 34.6 million ETH which is roughly 30% of the total supply of Ethereum, so the stats show. This led to a shortage of tokens for sale, thus playing a role in taming prices.
Further growth in ETH prices may be possible if the amount staked continues to increase. The Ethereum market may experience lower volatility and greater growth potential in the long term if there is less sell-side pressure.
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Price forecast is good
The current price fluctuations of Ethereum are primarily bullish. ETH is currently trading above $2,700 – a crucial support level – thanks to the 50-day moving average support. However, the 200-day moving average, at $3,022, remains a drag. If Ethereum is to see consistent price growth, it will be necessary to overcome this hurdle.
Ethereum’s long-term supporters are undoubtedly optimistic about the future of the platform, and the accumulating trend combined with ETFs and spot staking suggests that this confidence may not be unfounded. It will be interesting to see if Ethereum can overcome the significant pricing hurdles, but one thing is certain: for now, the long-term picture looks promising.
Featured image from Pexels, chart from TradingView