Ethereum Overtakes Bitcoin? BitMine Stacks $7.2B in ETH
Ethereum Ascends as Institutional Favorite
Ethereum [ETH] is solidifying its position as a top choice for institutional investors, rivaling Bitcoin [BTC]. Strong inflows, significant whale accumulation, and high network activity are fueling this shift, pushing ETH above $4,770 and prompting market observers to eye a potential breakout towards $5,500.
Once considered a secondary cryptocurrency to Bitcoin, Ethereum is now a core holding for major investment firms.
BitMine's Massive ETH Bet
Tom Lee’s BitMine is a prime example of this growing confidence, having steadily increased its Ethereum holdings to over 1.5 million ETH, currently valued at approximately $7.19 billion.
Source: Arkham/X
BitMine's recent activity includes a $45 million purchase, adding nearly 9,500 ETH to its already substantial treasury. While their most recent purchase at $4,735 per ETH hasn't yet yielded profits, earlier acquisitions at an average of $3,492 leave the firm with approximately $1.9 billion in unrealized gains.
Ethereum's On-Chain Strength
At press time, ETH traded at $4,771.74, marking a 0.82% gain in the last 24 hours and a 31% surge over the past month, according to CoinMarketCap.
This rally is further supported by institutional interest, with Ethereum ETFs recording inflows of $337.7 million on August 23rd, according to Farside Investors.
On-chain data reinforces this bullish outlook:
- Token Terminal data indicates record high activity on Ethereum Layer 1.
- Daily transactions and active addresses are at unprecedented levels.
Bitcoin Whale Dives into ETH
Adding to the momentum, a significant Bitcoin whale has reportedly shifted capital from BTC to ETH. According to Lookonchain, the trader sold 4,000 BTC ($460 million) to acquire 179,448 ETH worth approximately $806 million at an average price of $4,490.
The whale’s position includes 135,265 ETH in long contracts ($581 million) with $58 million in unrealized gains. They also converted an additional 300 BTC ($34.9 million) into ETH, bringing spot holdings to 122,226 ETH at an average of $4,377—already showing $42 million in paper profits.
Low Fees Despite High Activity
Ethereum's surge is particularly compelling because it hasn't resulted in high transaction fees. Gas prices have remained low, reflecting the effectiveness of Ethereum’s scaling upgrades. This efficiency boosts investor confidence, with analysts predicting a potential breakout towards $5,500.
BitMine's $20 Billion Expansion
BitMine Immersion Technologies recently announced plans to expand its at-the-market equity offering to $20 billion, bringing total approvals to $24.5 billion. This move further solidifies ETH's position alongside Bitcoin as a core holding for institutional investors. For projects looking to navigate the complexities of blockchain development and token launches, secure audits are crucial. Platforms like Codeum offer resources and expertise in smart contract audits and security to ensure project integrity.