Crypto Analytics Firm Santiment Highlights Bullish Trends in Bitcoin and Ethereum Holdings

by

As an analyst, I find Santiment’s recent insights into the Ethereum and Bitcoin markets to be highly informative and noteworthy. The data presented in their social media posts reveals significant trends that indicate growing institutional and large-scale investor confidence in both cryptocurrencies.

As a dedicated crypto investor, I closely follow the latest market trends and insights from trusted sources. Recently, Santiment, a renowned analytics firm in the cryptocurrency sphere, has shared valuable perspectives on both Ethereum and Bitcoin through their informative posts on social media platform X.

Ethereum’s ETH2 Beacon Deposit Contract

On July 10, Santiment announced a significant achievement for Ethereum, highlighting the ETH2 Beacon Deposit Contract. This contract plays a crucial role in allowing users to deposit Ethereum for staking in Ethereum 2.0. Notably, this contract now holds an all-time high of 47.36 million ETH. This quantity equates to approximately 33.9% of the total Ethereum supply, a substantial rise from the 10.9% it controlled two years ago. The increase in deposited ETH signifies growing trust and engagement within the Ethereum community as it moves towards a proof-of-stake consensus model.

The accompanying chart illustrates this impressive growth. It shows the distribution of ETH across different wallet sizes, highlighting the significant accumulation by large wallets. Specifically, the chart points out that wallets holding more than 10,000 ETH, excluding the Beacon Deposit Contract, have seen a decrease of 5.3% of ETH’s supply in the past two years. In contrast, wallets associated with the Beacon Deposit Contract have gained 23% of ETH’s supply, while wallets holding 10 or fewer ETH have seen a drop of 17.7%. This data suggests that larger stakeholders are increasingly committing their ETH to the staking contract, reflecting strong institutional and large-scale investor confidence in Ethereum’s future.

The Ethereum 2.0 Beacon Deposit Contract currently manages a record-breaking 47.36 million ETH for staking deposits. This equates to approximately 33.9% of the total Ethereum supply, marking a substantial increase from the 10.9% it controlled two years prior.— Santiment (@santimentfeed) July 10, 2024

Bitcoin ETF Volume Rebound

After mentioning this, on the 11th of July, Santiment brought attention to a notable uptick in daily spot Bitcoin ETF trading volumes. The statistics indicated an average of approximately $1.75 billion in spot Bitcoin ETF volume per day for the seven largest ETFs during the month of July. Initially, there was a sluggish beginning with an average volume of $1.24 billion from the 1st to the 3rd of July. However, trading activity picked up significantly, resulting in an average volume of $2.13 billion from the 4th to the 10th of July – representing a substantial 72% increase.

The chart attached to this post provides a clear visual representation of the recent surge in spot Bitcoin ETF trading activity. Daily volumes are depicted, revealing a noticeable spike in transactions. This revival suggests that investors are once again showing strong interest and faith in these products. Increased trading volume is essential because it signifies that the market is effectively absorbing spot Bitcoin ETFs, an optimistic indicator for the Bitcoin market’s overall wellbeing.

In the first seventeen days of July, an average of 1.75 billion dollars worth of Bitcoin ETF trading occurred daily across the seven largest ETFs. The initial days saw relatively low volume, but there was a significant increase in trading activity from the fourth to the tenth:

— Santiment (@santimentfeed) July 11, 2024

Increasing Number of Bitcoin Whale and Shark Wallets

On July 11, Santiment reported another finding concerning Bitcoin’s wallet activity. They identified a rise in the count of Bitcoin wallets holding over 10 BTC (whales and sharks) during the recent market downturn. The number of these wallets increased by 261 in July, marking the most significant increase since May 21st. This observation implies that larger investors are purchasing Bitcoin, while smaller traders are offloading their holdings.

The included chart enriches our understanding of the situation by displaying the trend of wallets containing ten or more Bitcoins and Bitcoin’s price fluctuations over time. The figures disclose that even though Bitcoin’s price has experienced recent declines, there has been a consistent uptick in the quantity of large-scale wallets. This pattern may indicate that influential investors are upping their Bitcoin purchases. Such conduct could be an encouraging sign for Bitcoin’s optimistic perspective in the long run, as it underscores the belief among major investors in Bitcoin’s prospects for future growth.

As a researcher studying the Bitcoin market, I’ve noticed an intriguing trend emerging. Large Bitcoin wallets, or “whales” and “sharks,” have been on the rise, while smaller traders seem to be unloading their holdings during this recent dip. In July alone, there has been a net addition of 261 new wallets, each holding ten or more Bitcoins. This growth in large-scale Bitcoin holders could be seen as a positive sign for the long-term bullish outlook on the cryptocurrency market.

— Santiment (@santimentfeed) July 11, 2024

Connecting the Dots

Three recent posts from Santiment indicate a growing momentum among institutional and individual investors towards Ethereum and Bitcoin. The significant amount of Ethereum being accumulated in the Beacon Deposit Contract underscores strong belief in Ethereum’s upcoming shift to proof-of-stake, which is expected to improve network efficiency and scalability. At the same time, the surge in spot Bitcoin ETF trading volumes and the emergence of more prominent Bitcoin holders point to a resilient faith in Bitcoin’s value proposition amid market volatility.

Read More

2024-07-11 09:03