Ethereum accumulation wallets grow by 65% in 2024

A notable 65% increase in Ether (CRYPTO:ETH) held in accumulation wallets has been observed since the start of 2024, with over $50 billion worth of ETH locked in these addresses, according to a crypto analyst.

Burakkesmeci, a contributor at CryptoQuant, reported that by October 18, 2024, Ethereum stored in accumulation wallets exceeded 19 million ETH.

This marks a significant rise from around 11.5 million ETH in these wallets at the beginning of the year.

Accumulation wallets, typically associated with long-term investors who make no prior withdrawals, have grown in importance as an indicator of confidence in Ethereum’s long-term value.

These wallets highlight the growing belief in Ethereum's potential beyond just tech enthusiasts.

Burakkesmeci commented, “It’s no longer just for tech enthusiasts—institutions and individuals see it as a key part of the financial future.”

The total amount of ETH in these addresses is expected to surpass 20 million by the end of 2024, driven in part by the anticipation of Ether spot ETFs.

Launched on July 23, spot Ether ETFs have recorded net outflows of $467.3 million, according to data from Farside.

Despite this growth in accumulation wallets, Ethereum investors have expressed concerns about the increasing ETH supply, despite high network usage.

Vitalik Buterin, Ethereum's founder, acknowledged these issues in a recent blog post, suggesting that solutions like single-slot finality could help improve transaction speeds and ease investor worries.

Additionally, Ethereum's futures market reached a milestone with over 5 million ETH in aggregate futures open interest on October 15, representing a 12% increase from the previous month.

However, traders remain cautious, viewing the surge in leveraged ETH positions as a potential indicator of upcoming market corrections.

At the time of writing, the Ethereum (ETH) price was $2,649.67.