Key Highlights:
- Major whales bought $110M in ETH and BTC via Wintermute OTC.
- Ethereum engagement surged to 15.4M active addresses last week.
- BlackRock’s BUIDL fund now holds 93% of its assets on Ethereum.
Ethereum ecosystem is experiencing a strong surge, driven by aggressive whale accumulation. Layer 2 networks are hitting record levels of engagement, reinforcing adoption.
BlackRock’s BUIDL and other major funds are increasing institutional interest. Their heavy allocations to ETH highlight growing confidence in its long-term potential.
Major Whale Purchases Signal Strong Market Activity
Blockchain data reveals that a major whale has bought $54 Million worth of Ethereum and $56.7 Million worth of Bitcoin. According to Arkham Intelligence, the transactions were done through Wintermute OTC.
The whale activity indicates that large investors are in greater demand. Data showed that Wintermute’s hot wallet transferred 30,000 ETH worth $54.03 Million.
At the same time, Wintermute OTC enabled inflows and outflows of over $110 Million USDC. These figures imply that whales are not only active, but they are also moving funds aggressively into crypto assets.
Additionally, whale movement tends to happen before the rest of the market. This suggests that institutions and high-net-worth individuals are becoming more interested in digital assets.
Ethereum Ecosystem Sets New All-Time Highs
Meanwhile, the ecosystem of Ethereum hit a new all-time high for weekly engagement. Over the past week, 15.4 million unique addresses have interacted with ETH and its Layer 2 chains. This surge highlights growing adoption and network activity.
In just seven days, the number of active addresses increased by 62.68%, a massive increase in user activity. In addition, Layer 2 dominance hit a record 6.65x. This indicated that more people are moving to Layer 2 solutions for cheaper and faster transactions.
Looking at the graph more closely, we see that ETH activity has increased steadily since mid-2023. However, it spiked massively in the last few weeks.
The surge in activity is likely driven by lower gas fees, making transactions more affordable. Improved applications on Layer 2 networks enhance usability and efficiency.
Additionally, growing demand from both new and existing users is fueling adoption. These factors collectively support the expanding ecosystem of Ethereum.
BlackRock’s BUIDL Fund Shows Institutional Interest in Ethereum
ETH is also gaining interest from institutional investors. Over the past 30 days, the total asset value of BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) has increased by 32.14%. It now holds $2,556,449,311 in assets.
Of the fund’s breakdown, 93% is based on Ethereum. This means that institutions believe Ethereum’s network is a place to settle because it is liquid, neutral, and secure.
The fund has 70 holders, an 11.11% increase in 30 days. The market cap distribution chart reveals that ETH dominates by far compared to other networks such as Aptos and Avalanche.
This amounted to some $53 Million each. Another signal of increasing confidence in the blockchain is that such a major fund manager is becoming more reliant on Ethereum.
Capital Sitting on Sidelines Ready to Deploy
Whale buying and rising engagement are also considerable capital on the sidelines. As stated by Ted, over $71.7 Billion USDT is currently sitting idle on the Tron network alone.
On-chain data shows massive USDT transactions involving $1 Billion batches. These transfers occur between black hole addresses and the Tether Treasury, raising curiosity about their purpose.
If some of this capital flows into ETH or other altcoins, it could increase prices. This implies that liquidity does not constrain future growth, as investors are ready to move fast.
Long-Term Chart of Ethereum Shows Bullish Structure
At the same time, Ethereum was trading in a bullish flag formation as per the long-term technical chart. The chart goes back to 2018 and shows a strong uptrend with many corrections.
The pattern usually occurs when an asset consolidates before continuing its bullish trend. The bullish target on the chart is way above current prices, at $16,414.
Technical patterns can’t guarantee future movements, but strong market signals suggest a bullish outlook. Whale buys, record user activity, institutional adoption, and stablecoin liquidity collectively support positive momentum.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
godfrey mwirigi
