ETH Long-Term Holders Surpass Bitcoin for the Second Time Ever
According to data from on-chain analytics platform IntoTheBlock, Ethereum has seen a significant increase in the percentage of long-term holders this year, surpassing Bitcoin for the second time ever. Currently, over 70% of Ethereum investors are holding onto their assets for more than a year, which is a new milestone for the blockchain.
Ethereum’s Price Performance and Long-Term Holders
Although Ethereum’s price performance has been underwhelming compared to Bitcoin this year, more investors are choosing to hold onto their ETH for the long term. This indicates that they believe in its potential for substantial value growth over time.
Long-term holders are essential for maintaining the overall health of any blockchain as they provide stability and reduce price volatility during market fluctuations.
Ethereum’s Previous Achievement and Bitcoin’s Profitability
This is the second time Ethereum has surpassed Bitcoin in terms of long-term holders. In the past, when this happened, Ethereum went on to lead in this metric over the following months.
However, when it comes to profitability based on IntoTheBlock’s In/Out of the Money metric, Bitcoin is ahead of Ethereum. Currently, 82.25% of all BTC addresses are making money at the current price, compared to 76.10% of ETH addresses.
Predictions and Future Outlook for Ethereum
Despite Ethereum’s underperformance compared to other altcoins like Solana and Cardano this year, there are still bullish predictions for its future. BitMex founder Arthur Hayes predicts a $5,000 price for Ethereum, while crypto analyst Raoul Pau believes that ETH will outperform BTC as a key macro trend in 2024.
To achieve this, Ethereum needs to break above the $2,380 price level. Currently trading at $2,285, ETH has seen a 91% increase in value this year.
Hot Take: Ethereum’s Growing Long-Term Holder Base Shows Confidence in Its Future
The increasing percentage of long-term ETH holders indicates growing confidence in Ethereum’s potential. Despite its underperformance compared to Bitcoin and other altcoins, investors are choosing to hold onto their ETH for the long term, suggesting they believe in its future growth. This trend could have positive implications for the overall health and stability of the Ethereum blockchain. With bullish predictions and the potential for ETH to outperform BTC in the future, Ethereum’s long-term holder base may continue to grow, further solidifying its position as a leading cryptocurrency.
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