Is Ethereum Undervalued? Two On-Chain Signals Indicate Value

Despite a rough year for price, Ethereum processes hundreds of billions in stablecoins daily, and rising whale accumulation hints at undervaluation.

Rich by Coin

2025-12-21

Ethereum has been one of the worst-performing major assets of 2025 so far. But don’t let that fool you: every day, tens of billions of dollars in stablecoins move across Ethereum, making it the settlement layer for global dollar liquidity.

On an average day, Ethereum Mainnet processes roughly $90-100 billion in stablecoin transfers, far more than any other network. According to Leon Waidmann, Head of Research at OnChainHQ, this activity is mostly USDT and USDC moving for payments, treasury operations, and real settlement. Large holders are accumulating ETH as well, even with prices down in the dumps.

Large holders aren’t selling like they would in a long bear market. Instead, the increased buying means belief in Ethereum and that the token is undervalued.

ETH has repeatedly traded near the realized price of accumulation addresses—the average entry price of long-term whales. Whale profits have been squeezed close to zero, yet inflows to accumulation addresses are increasing.

That’s a lot of patience. Final thoughts: Ethereum may be down 12% YTD, but it still settles $90-100B in stablecoins daily. Rising whale accumulation near the cost basis signals traders are confident in Ethereum’s long-term value.

Ethereum has been among the weaker major assets in 2025, yet it remains a crucial settlement layer for global dollar liquidity as tens of billions of stablecoins move daily on the network. On average, Ethereum Mainnet handles roughly $90-100 billion in stablecoin transfers, a figure that far exceeds other networks, and the activity is mainly USDT and USDC used for payments, treasury operations, and real settlement, according to Leon Waidmann of OnChainHQ.

Meanwhile, large holders are accumulating ETH rather than selling, suggesting confidence in its value. The uptick in accumulation implies belief that ETH is undervalued, with the token trading near the realized price of accumulation addresses—the average entry price for long-term whales.

Whale profits have been compressed to near zero, yet inflows to accumulation addresses continue, signaling patience. Bottom line: even as ETH sits about 12% lower year-to-date, it still settles $90-100B in stablecoins daily. The rise in whale accumulation near the cost basis points to continued demand and a belief in Ethereum’s long-term value.