Ethereum
Crypto: 78% of Ethereum is held by long-term investors
3:30 p.m. ▪ 3 min read ▪ by Luc Jose A.
A significant portion of Ethereum’s total supply is now held by “diamond hands,” long-term investors who resist the temptation to sell. Revealed by analytics platform IntoTheBlock, the data shows a significant increase in Ethereum reserves held by strong hands and reflects increased confidence in the longevity of the world’s second-largest crypto. This massive retention of ETH could not only stabilize the market but also pave the way for major developments in the crypto ecosystem.
An upward trend for long-term holders
Currently, about 78% of the total Ethereum supply is held by loyal investors who have acquired their ETH over a year ago. Recent data published by the market intelligence platform In the block reveals this.
This significant accumulation has accelerated in recent months, highlighting growing confidence in Ethereum’s long-term value. Long-term holders, who are less likely to sell their assets, are contributing to increased market stability by reducing selling pressure. This momentum could also attract new investors looking to position themselves in an asset that is perceived as more stable and reliable.
This trend is a positive indicator for Ethereum, suggesting that many investors are betting on its future potential and prefer to hold their assets rather than sell them.
The Divergence Between Ethereum and Bitcoin
Unlike Ethereum, where long-term holders are increasing their hold on supply, Bitcoin is experiencing the opposite dynamic. Since the beginning of the year, long-term Bitcoin investors have reduced their exposure, selling a significant portion of their assets. In May, they liquidated about 160,000 BTC, worth $10.1 billion. While this pace slowed in June, the phenomenon is still notable.
This divergence between the two leading cryptocurrencies highlights different strategies and market perceptions. Ethereum holders appear to be banking on long-term stability and valuation, while Bitcoin holders are choosing to capitalize on current gains.
In summary, the increased retention of Ethereum by long-term holders could mark a turning point in the history of this crypto, positioning it as a safe haven in an often unpredictable market.
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Luc José A.
A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I made a commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, decipher market trends, relay the latest technological innovations and put into perspective the economic and societal challenges of this ongoing revolution.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decision.