Ethereum’s previous bull run, which saw a record-high of $4,350 hit, boosted the booming non-fungible token (NFT) and decentralised finance (DeFi) sectors.
Dan Tapiero, the CEO of 10T Holdings, believes that institutional adoption is propelling the next leg of Ethereum’s bull run. He explained:
“Institutional adoption of Ethereum driving the next leg of the bull market in crypto. NYDIG, Fidelity, Cathie Wood’s Ark all moving in.”
Tapiero acknowledged that some of the leading institutional investors in the Ethereum network included Fidelity Investments, Ark Invest, and NYDIG.
Institutional investment has been pivotal in making Bitcoin (BTC) scale the heights. For instance, it was the engine behind Bitcoin’s all-time high (ATH) price of $64.8K recorded in mid-April.
American business intelligence firm MicroStrategy has led the park in Bitcoin investment based on its 105,085 BTC holdings. Therefore, institutional investment trickling in the Ethereum network is bullish.
The number of Ethereum addresses holding more than 10 ETH increases
According to crypto analytic firm Glassnode:
“The number of Ethereum addresses holding 10+ coins just reached a 4-month high of 272,881.”
On the other hand, Ethereum whales have been on an accumulation mode because addresses with at least 100,000 ETH accounted for 43.7% of the network supply.
These statistics indicated that Ethereum whales’ accumulation had been on an upward trajectory because they owned 35.8% of ETH supply three years ago compared to the present 43.7%.
ETH was recently boosted after the London Hardfork or EIP 1559 was implemented because a base fee for every transaction carried out was set. As a result, giving all a fair opportunity.
Furthermore, users who may wish to conduct their transactions faster than the standard provisions of the network were allowed to tip validators to fast-track their transactions.
With institutional investment entering the Ethereum network, whether this will trigger the next bull run remains to be seen.
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