With impressive coin acquisition growth, Ethereum lovers are making waves in the crypto space. The latest statistics show January’s tally was 11.5 million, and a solid 19 million ETH is currently hidden in long-term addresses, which is almost double, data from CryptoQuant shows.

As investors appear to be increasing their bets, this massive boost indicates growing confidence in Ethereum’s future. The cryptocurrency world is full of speculation as many estimate the number will reach 20 million by the end of the year.

It’s clear that there is significant optimism about Ethereum’s long-term potential despite market volatility, which leaves many wondering what’s behind this surge in confidence and what it could mean for the future cryptocurrency scene.

A number of factors encourage increasing involvement of institutional and individual investors. Notably, the U.S. Securities and Exchange Commission’s (SEC) approval of Ethereum spot funds (ETFs) has allowed recent players to enter the market.

Spot ETFs are driving demand

The increased interest from mainstream investors is largely due to the approval of the Ethereum spot ETF. This means that both individual investors and institutions are preparing for Ethereum’s long-term future. One cryptocurrency researcher even believes that by the end of 2024, ETH in collected addresses will equal the market value of the largest companies in the world.

Moreover, assuming Ethereum prices remain around $4,000, the analyst predicts that if these patterns continue, the total value of ETH stored at these addresses could reach $80 billion. At its current level of $2,737, ETH has increased by over 3% in the last 24 hours and over 10% in the last week.

Staking brings more Ethereum

The other main reason why there is less ETH in the market to trade is trading Ethereum staking growth. According to Dune Analytics, staking contracts have locked more than 34.6 million ETH, which is almost 30% of the total Ethereum supply, as the statistics show. This led to a shortage of tokens for sale and therefore played a role in taming prices.

A larger boost in ETH prices may be possible if the amount staked continues to boost. The Ethereum market could be less volatile and have more long-term growth potential if there is less selling pressure.

Price prospects are good

The current Ethereum price fluctuations are mainly upward in nature. ETH is currently trading above $2,700 – a key support level – thanks to support from the 50-day moving average. However, the barrier remains the 200-day moving average, which is $3,022. If Ethereum is to see continued price growth, this hurdle will need to be overcome.

Ethereum’s long-term supporters are undoubtedly positive about the future of the platform, and the accumulation trend along with staking and spot ETFs suggest that this confidence may not be unfounded. It will be captivating to see if Ethereum can overcome significant price hurdles, but one thing is certain: for now, the long-term picture looks promising.

Featured image from Pexels, chart from TradingView