Bullish Indicators: Ethereum Staking and Bitcoin Whale Activity Data from Santiment

Santiment, a leading crypto analytics firm, has recently provided significant insights into the Ethereum and Bitcoin markets through a series of posts on the social media platform X.

Ethereum’s ETH2 Beacon Deposit Contract

On July 10, Santiment revealed a notable milestone for Ethereum, focusing on the ETH2 Beacon Deposit Contract. This contract, essential for staking deposits for Ethereum 2.0, now holds an all-time high of 47.36 million ETH. This amount represents a significant 33.9% of the total Ethereum supply, a substantial increase from the 10.9% it held two years ago. This surge indicates a growing confidence and participation in Ethereum’s transition to a proof-of-stake 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.

Bitcoin ETF Volume Rebound

Following this, on July 11, Santiment highlighted a significant rebound in spot Bitcoin ETF volumes. The data showed that July has witnessed an average of $1.75 billion in spot Bitcoin ETF volume per day among the seven largest ETFs. Despite a slow start, there has been a marked increase in trading activity. From July 1st through 3rd, the average volume was $1.24 billion, but this surged to $2.13 billion from July 4th through 10th, reflecting a 72% rise.

The chart accompanying this post vividly illustrates this resurgence. It shows the daily trading volumes of spot Bitcoin ETFs, highlighting a significant uptick in activity. This rebound indicates renewed investor interest and confidence in spot Bitcoin ETFs, suggesting that traders are beginning to see value and potential in these investment vehicles once again. This increase in volume is crucial as it demonstrates that the market is absorbing spot Bitcoin ETF products more robustly, a positive sign for the overall health of the Bitcoin market.

Increasing Number of Bitcoin Whale and Shark Wallets

Also, on July 11, Santiment shared another observation regarding Bitcoin wallet activity. The firm noted an increase in the number of Bitcoin whale and shark wallets—those holding at least 10 BTC—during the recent dip period. July has seen a net increase of 261 such wallets, the highest since May 21st. This trend indicates that larger investors are accumulating Bitcoin while smaller traders are selling off their holdings.

The provided chart adds depth to this analysis, showing the number of wallets holding at least 10 BTC over time, alongside Bitcoin’s price movements. The data reveals that despite recent price dips, the number of large wallets has been steadily increasing, suggesting that significant players are buying more Bitcoin. This behavior could be a positive signal for the long-term bullish outlook on Bitcoin, as it shows that major holders are still confident in the cryptocurrency’s future potential.

Connecting the Dots

These three posts from Santiment collectively highlight a broader trend of increasing institutional and significant individual investor interest in both Ethereum and Bitcoin. The substantial accumulation of ETH in the Beacon Deposit Contract reflects strong support for Ethereum’s upcoming transition to proof-of-stake, a move that promises to enhance the network’s efficiency and scalability. Simultaneously, the rebound in spot Bitcoin ETF volumes and the growing number of large Bitcoin holders suggest that confidence in Bitcoin’s value proposition remains robust despite market fluctuations.

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