Ethereum, one of the most prominent cryptocurrencies, has seen a significant price drop of 4.28 percent in the past 24 hours. Despite this decline, long-term investors, known as crypto holders, are actively accumulating Ethereum (ETH), signaling strong confidence in the asset’s future prospects.
Recent data from IntoTheBlock reveals that these long-term holders now collectively own a staggering 110 million ETH. Similarly, insights from Santiment highlight that 104 whale wallets, each holding more than 100,000 ETH, now control 57 percent of Ethereum’s total supply, valued at $33.1 billion (approximately Rp5,329.6 trillion).
This accumulation trend among ETH holders has been consistent throughout the year, even as the broader crypto market has experienced downturns. Notably, 74 percent of ETH holders have retained their assets for over a year, showcasing their belief in Ethereum’s long-term potential.
The role of whale wallets, which dominate 53 percent of Ethereum’s supply, has been particularly significant. Over the past week, transactions exceeding $100,000 (Rp1.6 billion) have totaled a volume of $65.4 billion (Rp1,046.4 trillion). Additionally, net flows out of exchanges have reached $912.97 million (Rp14.6 trillion), indicating a substantial transfer of ETH to these large wallets.
Interestingly, the number of middle-sized wallets, holding between 100 and 100,000 ETH, has decreased to an all-time low, now representing just 33 percent of the total supply. Despite this shift, the growing number of staking wallets on the Ethereum network suggests a positive long-term outlook.
Investment experts like Juan Leon from Bitwise predict that Ethereum will be a major force in the asset tokenization market by 2025. Leon highlights Ethereum’s dominance in the tokenization sector, with an impressive 81 percent market share. Investment funds flowing into Ethereum ETFs have also set a new record, reaching $428.5 million (Rp6.8 trillion) on December 5, 2024.
Looking ahead, Leon estimates that Ethereum’s revenue from the real-world asset tokenization sector could exceed $2.4 billion this year and potentially increase up to 40 times by 2025. Ethereum’s robust and secure smart contract platform, supported by a strong network of validators, is expected to drive its continued growth and dominance in this emerging sector.
In conclusion, while Ethereum’s recent price drop may cause short-term concerns, the accumulation by long-term holders and whale wallets underscores a strong confidence in its future. As the crypto market evolves, Ethereum’s pivotal role in the tokenization market and its secure platform make it a promising investment for the years to come.
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