In a noteworthy development for the cryptocurrency market, Ethereum’s small wallet addresses—those holding 10 or fewer $ETH—have hit an all-time high, according to the latest data from Santiment. The number of these addresses has climbed to 121.74 million, showcasing a robust growth in interest among retail investors and smaller holders.
However, the trend among larger investors tells a different story. Santiment’s data reveals a decrease in holdings among “smart money” wallets, which possess between 10 and 10,000 $ETH. Over the past year, these wallets have declined by 5.8%. The most significant decline has been observed among the “whale” wallets—those holding more than 10,000 $ETH—which have dropped by 10.6%.
Despite these declines, there are signs of renewed activity among the ETH whales. Analytics firm IntotheBlock reports a notable increase in $ETH transactions exceeding $100,000. This spike, reaching levels not seen since late March, suggests heightened activity among large investors. The data leans towards accumulation. Addresses holding more than 0.1% of the total ETH supply have shown the highest daily accumulation in over a month, indicating that large holders are likely increasing their positions.
This bifurcation in behaviour between small and large holders paints a complex picture of the current Ethereum market. While retail investors continue to enter the space at unprecedented rates, larger investors appear to be strategically repositioning, with significant whale activity pointing towards a potential bullish outlook for ETH in the near future.
Expert Predictions On Ethereum ETF Impact
The broader market sentiment around Ethereum is also turning bullish. Santiment reports that Ethereum is experiencing the most optimistic crowd sentiment since September. This shift in mood is partly driven by the anticipation that the U.S. Securities and Exchange Commission (SEC) may soon approve the first Ethereum exchange-traded funds (ETFs), potentially igniting a significant price surge.
Recent reports underscore this optimism, noting that ETH’s price jumped this week amid growing speculation about ETF approvals. Asset manager VanEck’s application is at the forefront, with a decision expected by May 23. The potential approval of Ethereum ETFs is seen as a pivotal moment for the cryptocurrency market.
Mike Novogratz, the CEO of Galaxy Digital, emphasized the potential consequences and called it a “widening” about-face shift from Washington that could reshape Ethereum ETF landscape. According to Joe Lubin one of the co-founders of Ethereum, a “floodgate” of demand for Ether will create supply squeeze and high prices. He believes that as soon as it is allowed Bitcoin ETFs are likely to diversify into Ethereum.
Bernstein analysts Gautam Chhugani and Mahika Sapra forecast a 75% surge, which would push ETH price to around $6,600 following ETF approval, saying this is reminiscent of Bitcoins rally earlier this year. This estimate shows that there is too much at stake and excessive guessing about whether Ethereum has a future in the ETF space or not.
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