- Ethereum has gained a few percent since the lows of last week.
- The coin currently trades for $380 but peaked earlier today at $385.
- This price action has been underscored by reports that mass Ethereum accumulation has been taking place.
- Leading crypto analytics firm Santiment reports that ETH is leaving exchange wallets en-masse, suggesting accumulation and long-term confidence.
- The firm recently wrote: “ETH’s top 10 whale exchange addresses have continued swapping their funds to non-exchange wallets, & moving holdings at an impressive rate.”
- This may be related to institutional investment.
- According to Barry Silbert, CEO of Digital Currency Group, Grayscale Investment’s Ethereum Trust has accumulated 2% of all ETH in circulation
- The fundamentals of Ethereum are also strong as ETH 2.0 nears.
Ethereum Accumulation Spikes Ahead of 2.0 Launch
Santiment blockchain data indicates that there is a spirit of accumulation amongst Ethereum holders and investors. The blockchain analytics company recently reported that the count of ETH held on exchanges has dropped in the past two months, suggesting investors are long-term confident about ETH:
“$ETH’s top 10 whale exchange addresses have continued swapping their funds to non-exchange wallets, & moving holdings at an impressive rate. The 20.5% decrease in tokens on exchanges the past 2 months indicates price confidence by top #Ethereum holders.”
Chart of ETH's price action over the past few months with an overlay of the number of top 10 exchange holdings vs. non-exchange holdings. Chart from Santiment, a blockchain analytics firm.
Much of this accumulation seems to be related to institutional players.
According to Barry Silbert, CEO of Digital Currency Group, Grayscale Investment’s Ethereum Trust has accumulated 2% of all ETH in circulation:
“While everybody has been focused on our bitcoin accumulation, the @GrayscaleEthereum Trust now holds over 2% of all ETH in circulation.”
Head of DTC Capital Spencer Noon previously commented that institutions that want access to DeFi are first routing capital through Ethereum:
“My read on #DeFi after speaking with instl investors, fund mgrs, OTC desks, and FOs over the last few wks: The herd is coming. They’re excited about DeFi but new to it, so they’re buying $ETH first.”
Long-Term Fundamentals of ETH Strong
The fundamentals of ETH are stronger than ever as this accumulation picks up.
Heath Tarbert, the chairman of the U.S. Commodities and Futures Trading Commission (CFTC), recently said that he has been “impressed with Ethereum, period, full stop.”
He said that the cryptocurrency is much more like the Internet if Bitcoin was to be likened to email.
Photo by 戸山 神奈 on Unsplash Price tags: ethusd, ethbtc, eth Charts from TradingView.com On-Chain Data Shows Mass Accumulation Among Ethereum Investors
Source: Bitcoinist News