10k ETH Holding Addresses Hits 13-Month High While Exchange Balances Hits 15-Month Low
While Bitcoin is ranging, ETH has taken the reins and surged to a new ATH.
Ethereum started the week on a bullish note as the digital asset went to $1,477 on Coinbase and is now recording more ‘real’ volume at $8.04 billion than Bitcoin’s $5.55 bln, as per Messari.
Already up 95% YTD, ETH is currently keeping around $1,400 and preparing to push for $2,000. But this is just the beginning, as ETH has just entered its price discovery.
When Bitcoin went on a price-discovery after breaking $20,000 in mid-December, the price of BTC more than doubled in less than a month. Not to mention, Eth has always outperformed the leading digital currency.
The second-largest cryptocurrency with a market cap of $160 billion is also ready for its very own heightened institutional interest as CME prepares to launch ETH futures on Feb 8.
While more institutions are getting ready to jump on the ETH train, the Ethereum accumulation is already getting strong. The number of addresses holding 10,000 ETH has hit a 13-month high. According to Glassnode, over the past 30 days, 32 new whale addresses were created.
In the past few days, the amount of Ether moved off of the cryptocurrency exchanges has also gained pace, moving in a completely opposite direction of accumulation as ETH balance on exchanges hit a 15-month low at just under 15.5 million ETH.
Over the weekend, the exchanges saw the highest outflow of ETH in four years. IntoTheBlock noted,
“Staggering amounts of ETH continue to find their way out of centralized exchanges… Over 934,000 ETH were removed (with) the majority coming from Bitstamp.”
— glassnode alerts (@glassnodealerts) January 23, 2021
These coins are being moved out of the exchanges at a rapid pace to be either put into cold storage, DeFi, or ETH 2.0 deposit contract for staking.
DeFi currently holds 7 million ETH, with analyst Qiao Wang noting that “DeFi as a sector could ultimately be worth more than BTC.”
Many DeFi blue chips are already moving above the ranks, with Chainlink (LINK) at the 6th spot, above XRP, BNB, and Stellar. Wrapped Bitcoin (WBTC), Uniswap, AAVE, and Synthetix are at 13th, 14th, 16th, and 21st place, respectively, as per Messari.
The ground swell of innovation happening in Ethereum and DeFi is an unstoppable tidal wave 🌊
This market is not like 2017. Less euphoric, much more profound. https://t.co/63bD57gupu
— Santiago R Santos (@santiagoroel) January 24, 2021
Grayscale Investments is also holding 2.94 million ETH but with no new purchase of Ether since 131.25k ETH was added on Dec. 19.
As for ETH 2.0 deposits, it has more than 2.8 million ETH locked in for a long time. And those who think Ethereum can’t scale, trader and economist Alex Kruger, believe this will happen. He said,
“Current limitations are temporary. These limitations slow adoption down, giving earlier stakeholders a longer period to accumulate. The greater the problem to be solved, the greater the opportunity.”