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Friday, July 19, 2024

Ethereum Demand Surges With Permanent Holders Buying 298K ETH in One Day

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Ethereum has continued to face challenges staying above the $4,000 mark, mirroring the lack of momentum in the broader market.

While the investors await for a rally, data suggest a surge in demand for the world’s largest altcoin.

Permanent Ethereum Holders Bought Big

According to CryptoQuant head of research Julio Moreno’s recent findings, Ethereum’s demand has spiked owing to a significant buying spree by “permanent holders” of the cryptocurrency. In fact, this cohort of holders recorded the second-highest daily purchase volume ever on June 13th after acquiring 298,000 ETH – which is worth more than $1 billion at the current price.

The figure almost touched its highest daily buying by permanent holders on September 11, 2023, when this group of Ethereum investors bought 317,000 ETH.

Ethereum’s price, on the other hand, is almost 8% down over the past week following several corrections. It was currently trading a little above $3,500. Hence, the latest surge in demand highlighted the growing interest and confidence in Ethereum among long-term investors ahead of spot Ethereum ETF trading.

Wealthy investors have continued to accumulate, as evidenced by the rise in the number of Ethereum addresses holding 10,000 or more ETH over the last three weeks. Investment products based on Ethereum also witnessed significant inflow after the US Securities and Exchange Commission (SEC) granted the initial round of applications in May.

More recently, Coinbase experienced its largest Ethereum outflow of the year on June 12th, with over 336,000 ETH, worth $1.17 billion, being withdrawn. The transactions, ranging from $400 million to $1.1 billion, indicated movement by whales or unidentified institutions in anticipation of a price rise.

Update on Spot Ether ETF

The SEC Chair Gary Gensler updated senators during a budget hearing on Thursday that the final approval of spot Ethereum ETF is expected to conclude by the end of this summer.

The process of approving Ether ETFs is progressing “smoothly” after the initial approval of a batch of such products. The agency had previously greenlighted the first round of applications last month and Gensler stated that the final registration requirements, known as S-1 filings, are now being handled at the staff level.

Only once these filings are approved, the new spot Ethereum ETFs can be listed.

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