ETH Held in Accumulation Wallets Jumps By 65% Since Start of 2024

What Are Accumulation Addresses?

Accumulation addresses are wallets where investors hold cryptocurrencies for the long term, without frequent trading. These wallets are often used by those who believe in the future growth of a particular cryptocurrency, like Ethereum.

Significant Increase in Ethereum Holdings

Since January 2024, the amount of Ethereum held in these accumulation addresses has nearly doubled. As of October 18, 2024, over 19 million ETH are stored in such wallets. This represents a 65% increase since the start of the year, showing strong confidence among long-term investors.

Impact of Ethereum Spot ETFs

The approval of Ethereum Spot Exchange-Traded Funds (ETFs) has played a crucial role in boosting investor confidence. These ETFs allow mainstream investors to gain exposure to Ethereum without directly buying the cryptocurrency. Despite some net outflows of $467.3 million since their launch in July, the overall sentiment remains positive.

Potential

Analysts predict that the amount of Ethereum in accumulation addresses could surpass 20 million by the end of 2024. If Ethereum’s price reaches $4,000, this could translate to a total value of $80 billion. Currently, 71% of Ethereum holders are in profit, with most having held their coins for over a year.

The increase in Ethereum held in accumulation addresses signals strong belief in its long-term potential. For investors, this trend suggests that Ethereum could continue to be a valuable asset. However, it’s important to stay informed about market changes and consider the risks involved in cryptocurrency investments.