Ether Accumulation Surges by 65% in 2024 as Investors Lock in Long-Term Holdings

• Over $50 billion worth of Ether is locked in accumulation addresses, signaling strong investor confidence in Ethereum.
• The amount of ETH in accumulation wallets grew by 65% since January, now totaling 19 million ETH.
• Spot Ether ETFs saw a $467 million net outflow since July, but accumulation continues to rise.

Ethereum’s long-term accumulation has seen a significant rise throughout 2024, with over $50 billion worth of Ether now held in wallets of investors with no history of withdrawals. As of October 18, over 19 million ETH were locked in these addresses, reflecting a 65% increase since the beginning of the year, according to data from CryptoQuant.

Ether Accumulation Grows as Confidence Builds

The total number of Ether stored in accumulation wallets has grown substantially, starting with 11.5 million ETH in January. These wallets belong to investors who are holding for the long term and indicate growing confidence in Ethereum’s future prospects. With Ether trading at $2,645, this represents a significant locked value, suggesting that institutional and individual investors alike see Ethereum as a vital part of their financial strategy.

Burakkesmeci predicted that the amount of ETH in these addresses may surpass 20 million by the end of 2024, driven in part by excitement around spot Ether exchange-traded funds (ETFs).

Spot Ether ETFs Face Outflows Amid Investor Interest

Since the launch of spot Ether ETFs on July 23, total net outflows have reached $467.3 million, according to data from Farside. While these outflows suggest some investors may be pulling back, the accumulation trend highlights that many continue to hold ETH for long-term gains.

Ethereum’s network usage remains high, and with more institutional involvement, the growing number of validators, up 30% this year, further indicates Ethereum’s expanding role in the financial ecosystem. However, traders have expressed concern over the rise in Ether futures positions, which could signal a potential price correction if demand for leveraged positions continues to grow.