Institutional Accumulation vs. Retail Exit in Ethereum Market

Major Ethereum holders have boosted their positions as the cryptocurrency experiences sideways movement, coinciding with significant outflows by retail investors.

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Institutional Accumulation vs. Retail Exit in Ethereum Market Whale and Shark Activity Dominates DeFi Investment Trends Contrasting Market Performance Spot ETF Inflows Reversal Retail ETF Investment Impact

“Over the past month alone, these key whale and shark wallets have rapidly added more coins as retail traders have taken profits,” financial intelligence provider Santiment observed on June 13.

Whale and Shark Activity Dominates

Ethereum wallets holding between 1,000 and 100,000 ETH have accumulated a net 1.49 million ETH ($3.79 billion) over the last 30 days, representing a 3.72% increase in holdings according to Santiment data.

These large holders now collectively possess 41.61 million ETH, accounting for nearly 27% of the cryptocurrency’s current supply.

Whale transaction activity visualization — Whale transaction activity in Ethereum’s DeFi ecosystem increased 313.5% during the second week of July, Santiment reported.

DeFi Investment Trends

According to Santiment data, large investors have significantly increased their activities in Ethereum’s DeFi ecosystem:

Ethereum Name Service (ENS) transactions saw a 313.5% increase among whales
Ethereum lending protocols experienced a 203.8% surge
Layer 2 solutions demonstrated substantial growth with “triple-digit” adoption increases

Contrasting Market Performance

Despite heightened institutional accumulation and DeFi integration, Ether’s price has experienced limited gains. Over the last month and 30 days, Ether is up just 1.8% and 3.8% respectively, according to CoinGecko data.

At $2,575 per ETH, the cryptocurrency has declined nearly 48% from its all-time high, while maintaining its 27% market share dominance in the cryptocurrency landscape.

Spot ETF Inflows Reversal

A significant development occurred this week as the 19-day record inflow streak for US spot Ethereum ETFs was snapped, with $2.1 million in net outflows reported according to Farside data.

This break in the longest inflow streak since the products launched in July 2024 followed approximately $1.37 billion in cumulative inflows, predominantly into the BlackRock-issued iShares Ethereum Trust ETF.

Retail ETF Investment Impact

Retail investors have also reduced their exposure to physical ETH via approved ETFs, with outflows contributing to overall market sentiment and positioning.