Definition ∞ Ether accumulation describes the process of increasing one’s holdings of Ether, the native cryptocurrency of the Ethereum blockchain. This involves acquiring Ether through various means, such as purchasing on exchanges, earning through staking, or receiving as payment for services. Investors and institutions accumulate Ether for diverse reasons, including speculative investment, participation in decentralized finance protocols, or for network utility. It often indicates a long-term belief in the Ethereum ecosystem’s value proposition.
Context ∞ Ether accumulation by both retail and institutional participants is a closely watched metric for market sentiment and the health of the Ethereum network. Recent trends show increased accumulation by large holders, suggesting growing institutional confidence in Ethereum’s long-term viability post-merge. This activity influences market liquidity, price dynamics, and the overall supply distribution of Ether.