A prominent market intelligence firm finds that Ethereum (ETH) whales are gobbling up the leading smart contract platform at the highest rate seen since 2020.
According to crypto analytics agency Santiment, deep-pocketed Ethereum investors are snapping up ETH at a significant rate.
Santiment says the last accumulation event like this that happened in 2020 sparked a massive rally that saw ETH rise by 50% in just over a month.
“Ethereum’s active shark and whale addresses continue accumulating with prices less than a quarter of their all-time high levels a year ago. In Oct/Nov 2020, these 100 to 100,000,000 ETH addresses assisted in pushing ETH to a +50% price rise over 5 weeks.”
Earlier this week, Santiment found that ETH whales devoured a staggering $1.03 billion worth of Ethereum in just one day, which represented the fifth-largest single-day purchase by the largest group of whales in the past year.
The insights firm also notes that layer-2 scaling solution Arbitrum is starting to compete with the second largest crypto asset by market cap in terms of stablecoin usage.
According to Santiment, even though stablecoin usage on Ethereum dwarfs that of Arbitrum, usage of dollar-pegged virtual assets on Arbitrum has recently doubled while their usage on ETH has only been slightly increasing.
Ethereum is changing hands for $1,197 at time of writing, a 2% increase during the last 24 hours.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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Featured Image: Shutterstock/Vo Thi Thao Lan