Ethereum Whales Add 14% to Their Holdings Amid Market Pressure
Despite the bearish trends in the crypto market, which have affected major cryptocurrencies such as Ethereum, there are signs of accumulation from large investors. Ethereum addresses holding over one million ETH have collectively added 3.5 million more ETH, worth around $4.55 billion, in the past few months. This has increased their holdings by more than 14%, signaling a shift in behavior despite the continued market downturn.
Ethereum Whale Behavior Contradicts Broader Market Trends
The latest data reveals a stark contrast between Ethereum whale behavior and that of other major investors. While Ethereum whale addresses have been accumulating more ETH, other large holders have reduced their positions by over 3 million ETH in the last five weeks. This redistribution of holdings could explain some of the selling pressure that has caused Ethereum’s price to drop by 75% from its all-time high, especially after the anticipated Ethereum Merge failed to trigger any meaningful price recovery.
Ethereum Outflows Signal Growing Investor Confidence
Ethereum has seen negative net flows from centralized exchanges for the past two weeks, a sign that more investors are accumulating ETH off-exchange. This sentiment is supported by the increasing adoption of Ethereum by major financial institutions. For instance, the Bank of New York Mellon has launched an Ethereum custody service, while Fidelity’s crypto division plans to offer ETH trading to institutional clients by the end of October.
Ethereum Dominates NFT Market Despite Broader Decline
Although Ethereum’s volume has decreased since April, the network remains the leader in the NFT market. Despite the rise of Ethereum alternatives, it continues to host the most valuable blue-chip collections, including Bored Ape Yacht Club (BAYC) and Crypto Punks. The shift to Ethereum’s proof-of-stake model has not hindered its dominance in the NFT space, as the network’s higher transaction fees make it harder to artificially inflate volume, as is common on lower-fee blockchains like Solana.
Ethereum Whales and Institutional Adoption Fuel Optimism Amid Market Slump
As Ethereum’s price continues to struggle, whale addresses have shown continued confidence in the asset, and institutional adoption of Ethereum is increasing. With major players such as BNY Mellon and Fidelity backing the network, Ethereum’s fundamentals remain strong, offering a glimmer of hope for investors looking to weather the current market conditions.
