According to CryptoQuant, a leading provider of on-chain data and analytics, institutional investors have been accumulating Ethereum (ETH) in recent weeks. The amount of ETH held by institutional investors has increased by 8.3% since October 2023, reaching a new all-time high of 11.5 million ETH as of November 27, 2023.
CryptoQuant analyst Woo Minkyu said that this surge in institutional ETH holdings reflects the strong belief in the long-term value and growth potential of Ethereum. He pointed out that Ethereum’s price has stabilized between $2,000 and $2,100, despite the volatility in the crypto market.
Ethereum Powers the Decentralized Innovation
Woo Minkyu also noted that Ethereum’s technical improvements and upgrades, including the Ethereum 2.0 transition and the enhanced smart contract functionality, have highlighted ETH’s long-term investment potential, significantly attracting institutional investors.
Ethereum 2.0 is a major upgrade to the network that will switch from the proof-of-work consensus mechanism to the proof-of-stake, making the network more scalable, secure, and sustainable. The first phase of Ethereum 2.0, the Beacon Chain, was launched in December 2020, introducing the staking feature that allows ETH holders to earn passive income by locking their coins and validating transactions.
The second phase, the Merge, which came out during Q2 2022 and has merged the current Ethereum mainnet with the Beacon Chain, effectively ending the mining process and reducing the energy consumption of the network. The final phase, the Shard Chains, which came out this year and has split the network into 18 parallel shards that have increased the transaction throughput and lowered the gas fees.
Occupying the second position as the most valuable cryptocurrency in terms of market capitalization, Ethereum stands as a premier platform for a variety of decentralized innovations. These include decentralized applications (DApps), the burgeoning field of decentralized finance (DeFi), and the increasingly popular non-fungible tokens (NFTs). As of November 27, 2023, Ethereum’s price was $2,01, down 1.66% in the last 24 hours according to data provided by CoinMarketCap.
