On-chain data from DingDing makes it clear—this market has always been about savvy capital getting in first, while retail investors are always a step behind.

Recently, a group of big players has been quite cunning, transferring 6.1 million ETH into cold wallets all at once, which at current prices is close to $25.5 billion. Even more impressive is that their cost basis for these holdings is between $3,700 and $4,100. How are they doing this? They use thousands of dispersed accounts to operate around the clock, seemingly shorting the market to create panic, while secretly absorbing retail investors' capitulation sell-offs, and even signing three-year lock-up agreements. This stance clearly shows one thing: short-term price fluctuations are not their concern; they are playing the long game for three years down the line.

**1. Why are institutions so obsessed with ETH? The yield calculations are clear**

Simply put, the return rates beat traditional financial products by a mile. Ethereum staking yields are steadily around 4% annually, which is significantly higher than dollar-based savings interests. Some large institutions treat staking as their main business, throwing in hundreds of thousands of ETH, earning nearly $400 million in interest annually. This doesn’t even include the arbitrage space with ETFs—institutions subscribe at low prices in the primary market and then sell at higher prices in the secondary market, squeezing two rounds of "risk-free returns" per year.

Liquidity is quietly tightening. Currently, ETFs and large holders account for 7.85% of ETH’s circulating supply. If this ratio rises to 15%, the free float will drop sharply to around 72 million ETH. Scarcity drives value, and a mechanical push toward $5,000 is just the appetizer. Even more aggressive is how giants like BlackRock continue to buy through ETFs—retail investors still hoping to pick up cheap chips? Not a chance.

Technological upgrades are also supporting this trend. The BPO2 upgrade activated in early January directly increased the block capacity limit, and layer-two networks’ fees are expected to drop significantly. What does this mean? The cost of using Ethereum has decreased, ecosystem applications will run more efficiently, and the long-term value support becomes even more solid. Institutions have already calculated this step ahead, so they are willing to lock in for three years and wait.