For Ethereum’s ether cryptocurrency, powerful hands appear to be backing the recent rally to record highs.
According to blockchain analytics company Glassnode on-chain data, the number of whale addresses soared to a 13-month high of 1,103 on Saturday. This month alone, more than 35 whale addresses have been established and 75 since mid-November.
As coindesk.com reported, the increased accumulation by deep pocket investors may have placed upward pressure on the price of the ether.
According to CoinDesk 20 data, Ether increased to a record high of $1,450 late Sunday January 24 and was last seen changing hands around $1,405, marking a 90 percent rise on a year-to-date basis.
Although on-chain data for ether bulls is promising, it should be taken with caution to draw conclusions from metrics based on addressing growth changes, since a single user can monitor many addresses. The data does, however, seem to suggest an influx of cash into the ether market, presumably from new and current investors.
“The ETH slingshot is only now being drawn back, and we can expect a powerful upward move in the first half of 2021,” said Jehan Chu, managing partner of Kenetic Capital, a Hong Kong-based crypto investment company, adding that increased staking and DeFi growth is accelerating organic cryptocurrency demand.
Over the past 15 days, Ether locked in DeFi applications rose from 6.615 million to 7.002 million. However, according to DeFi Pulse, the tally remains slightly below the early January peak of 7.30 million and the 2020 high of 9.771 million.