ETH has increased 65% in wallets since the beginning of 2024.
More than $50 billion worth of Ether is currently locked away in storage wallets — nearly 65% more than at the start of 2024, a crypto analyst said.
“On October 18, 2024, the total amount of Ethereum in storage addresses will exceed 19 million,” CryptoQuant contributor Burakkesmeci wrote in an October 20 analyst note.
11.5M ETH increase in storage addresses
At the time of publication, Ether (ETH) is trading at $2,645, which equates to approximately $50.2 billion locked up in storage addresses – addresses for long-term investors without upfront fees.
Burakkesmeci said that since January, when there were around 11.5 million ETH in these addresses, the Ethereum stock in the addresses has increased by 65%.
Storage addresses are an important indicator for traders and market participants, as they show overall confidence in Ethereum's long-term outlook.
ETH will balance on stored addresses from October 18th. Source: CryptoQuant
Burakesmechi speculates that the total amount of ETH in these wallets will exceed 20 million by the end of 2024. He based much of his opinion on speculation before the launch of Spot Ether ETFs in July.
“It's no longer just for technology enthusiasts – institutions and individuals see it as a key part of the future of finance,” said Burakusmechi.
In the year Since its launch on July 23, SpotEther ETFs have recorded total net inflows of $467.3 million, according to Farside data.
The SpotEther ETF has seen net inflows of $467.3 million since its launch in July. Source: Farside data
On October 15, Cointelegraph reported that Ethereum investors were disappointed with the increase in supply despite high network usage.
Traders have recently been concerned about open interest in Ether futures
In a recent blog post, Ethereum founder Vitalik Buterin acknowledged this problem and suggested that improving transaction times could help as a single-slot endpoint.
Related: Institutional Adoption Driven Ethereum Validators Up 30% Year Over Year
That same day, the total Ether futures addressable market exceeded 5 million ETH for the first time, marking a 12 percent increase from four weeks earlier.
It has raised concerns among traders as they believe it could be a warning flag. An increase in demand for ETH slots usually precedes serious price corrections.
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