Ethereum Whales Accumulate 3.72% More ETH Amid Market Volatility

Major Ethereum holders have been actively acquiring Ether (ETH) over the past month, while retail investors have been selling their holdings. According to crypto analytics firm Santiment, wallets holding between 1,000 ETH (whales) and 100,000 ETH (sharks) have added a net total of 1.49 million ETH, worth approximately $3.79 billion, over the last 30 days. This increase represents a 3.72% rise in their collective holdings, bringing their total to 41.61 million ETH, which is nearly 27% of the current supply of Ether.

This trend indicates that large investors are confident in Ethereum's long-term prospects, despite recent market volatility. The accumulation by whales and sharks suggests that they are taking advantage of price dips to increase their holdings. Technical data and ETH accumulation trends suggest that price dips in the $2,100 zone are strategic purchasing opportunities. This strategy allows large investors to acquire more ETH at a lower cost, potentially increasing their returns when the price of ETH rebounds.

Ethereum whales are also tapping into the decentralized finance (DeFi) space. The Ethereum Name Service saw the biggest rise in whale transaction activity, with a 313.5% increase in the second week of July. Ethereum lending protocols also saw significant activity, with a 203.8% increase. Additionally, the Ethereum layer 2 Base-powered Virtual Protocol and USDC transfers on the Ethereum layer 2s, Arbitrum and Optimism, also saw triple-digit rises in whale transaction activity.

Despite the whale buying and adoption, Ether is still only up 1.8% and 3.8% over the last 14 and 30 days, respectively. Ether is trading at $2,575, down nearly 48% from its all-time high. This indicates that while large investors are bullish on Ethereum, the overall market sentiment remains cautious.

The Ethereum Foundation has also been making significant moves, pledging $500,000 to the defense of Roman Storm, a developer of Tornado Cash. This support comes roughly two years after the initial indictment and ahead of the criminal trial expected to begin on July 14. The foundation's involvement in the legal defense of a developer highlights its commitment to supporting the Ethereum ecosystem and its developers.

SharpLink, a publicly traded company, has become the largest public ETH holder after purchasing $463 million worth of ETH. This move positions SharpLink as a major player in the Ethereum market, although some entities, including the Ethereum Foundation and BlackRock, still hold more ETH. The accumulation of ETH by large investors and the support from the Ethereum Foundation for its developers indicate a strong belief in the future of Ethereum. Despite the recent volatility and retail investors cashing out, the strategic moves by whales and sharks suggest that they are positioning themselves for potential price increases in the future. The Ethereum ecosystem continues to evolve, with significant developments and investments that highlight its importance in the digital landscape.