Key Points
- Whales and retail investors have been accumulating large amounts of Ethereum (ETH).
- Despite the increased interest, network growth for ETH has seen a decline.
Ethereum (ETH) has seen a significant increase in interest from both whales and retail investors. This comes as the cryptocurrency’s price has soared in recent weeks, leading to increased profitability for its holders.
Whale Investments in Ethereum
Data from Lookonchain reveals that a whale has made a strategic investment in the Ethereum ecosystem. This whale purchased a substantial amount of the altcoin even before the news about the SEC approving ETFs tied to ETH was released.
This whale’s purchase consisted of 8,733 ETH at $3,054.56 per token, totaling an investment of 26.67 million USDT. Consequently, the whale currently holds an unrealized profit of 6 million dollars.
Following the positive sentiment surrounding the SEC’s approval, the whale further invested $24.7 million into various tokens within the Ethereum ecosystem. This suggests that major investors see considerable value in Ethereum, which could potentially encourage more investors to buy in and drive the price up.
Retail Investor Interest in Ethereum
The interest in ETH is not limited to whales. Analysis of Santiment’s data shows that retail investors are also accumulating significant amounts of the altcoin. Addresses holding 0 to 1 ETH have shown a massive increase in accumulation.
The increase in buyers can potentially exert upward pressure on prices. A larger pool of ETH being traded by retail investors can increase liquidity, making it easier to buy and sell without significantly affecting the price, and thereby reducing the centralization of ETH.
At the time of writing, ETH was trading at $3,814.18 and its price had grown by 1.16% in the last 24 hours. The velocity at which ETH was being traded had also surged, indicating a higher number of transactions. However, Network Growth had fallen, suggesting that new users were not keen on buying Ethereum at its current price.
