Ether‘s recent price drop has failed to deter investors from accumulating the cryptocurrency, on-chain data indicates.
- The second-largest cryptocurrency by market value was trading at $345 on Friday at 15:20 UTC. This represents a 20% decline on a month-to-date basis. Prices reached two-year highs above $480 on Sept. 1.
- While the cryptocurrency has suffered a double-digit price pullback, the number of ether held by top non-exchange addresses has increased by 8% to 27.79 million from 25.54 million, as per data provided by the blockchain intelligence firm Santiment.
- The total amount of ether held by non-exchange addresses has increased by 20% since mid-July.
- “Accumulation during the price drop shows investor confidence in the cryptocurrency’s long-term prospects is strengthening,” Nicholas Pelecanos, advisor to NEM Ventures, an investment arm of the NEM blockchain ecosystem, told CoinDesk in a LinkedIn chat.
- Pelecanos expects the trend to continue as the decentralized finance (DeFi) boom shows no signs of slowing down.
- The total value locked in the DeFi applications rose above $9 billion earlier this month, an increase of more than 1,400% year-to-date, according to data source DeBank.
- Ethereum’s blockchain dominates the DeFi space, and big investors often self-custody ether on decentralized lending/borrowing platforms to generate additional returns rather than just hold.
- Ether has rallied by 168% so far this year, while bitcoin, which underwent its third mining reward halving in May, has gained 48%.