In the last 24 hours, large cryptocurrency holders, often referred to as whales, on the Ethereum (ETH) network have acquired over $400 million worth of ETH. This significant accumulation comes amidst a broader market correction that has seen the cryptocurrency lose around 4.7% of its value over the past week.
The data, shared by popular cryptocurrency analyst Ali Martinez via Santiment, shows that approximately 260,000 ETH tokens were purchased within this period, amounting to nearly $425 million. This surge in buying activity occurs as Ethereum's rivals, such as Soalan (SOL) and Cardano (ADA), have been witnessing growth in terms of total value locked in their decentralized finance (DeFi) ecosystems.
Despite the ongoing market correction that has seen the overall cryptocurrency market capitalization drop to near the $1 trillion mark, Ethereum has been showing resilience. Over the past 30 days, it has lost around 1.7% of its value and is down just 1.7% for the year to date. The digital asset started the year at around $1,560 and reached a high above the $2,000 mark but failed to maintain this level.
In terms of development, Ethereum continues its journey to become a world computer, with developers focusing on improving scalability and reducing high transaction fees seen on the network through optimistic rollups. These involve bundling multiple transactions together and processing them off-chain before submitting them to the Ethereum Mainnet.
Additionally, the network is working on smart contract wallets to enhance user security and privacy. Currently, users have to set up their own wallets and self-custody their funds, exposing them to potential security breaches. A smart contract wallet controlled by a smart contract instead of private keys could mitigate these risks.
Furthermore, Ethereum is exploring ways to increase user privacy through proposed stealth addresses or one-time addresses that hide the recipient’s identity on the Ethereum blockchain.
This flurry of whale buying activity comes during a critical time for Ethereum. Recently Ark Invest, led by Cathie Wood, in collaboration with 21Shares, lodged a proposal to the Securities and Exchange Commission for an Ethereum ETH/USD-based ETF named ARK 21Shares Ethereum ETF. The ETF aims to provide investors with direct access to Ethereum and is set to be listed on the Cboe BZX Exchange.
This development followed a New York court's recent classification of Ethereum as a commodity in a lawsuit involving Uniswap for alleged breach of U.S. securities laws by operating as an unregistered exchange and offering securities without proper registration.
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