Crypto: 78% of Ethereum is Held by Long-Term Investors

A significant portion of Ethereum’s total supply is now held by “diamond hands,” these long-term investors who resist the temptation to sell. Revealed by the analytics platform IntoTheBlock, this 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 Ethereum’s total supply is held by loyal investors who acquired their ETH more than a year ago. Recent data published by the market intelligence platform IntoTheBlock reveals this.

This significant accumulation has accelerated in recent months, highlighting growing confidence in the long-term value of Ethereum. Long-term holders, less inclined to sell their assets, contribute to increased market stability by reducing selling pressure. This dynamic could also attract new investors looking to position themselves on an asset 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 onto their assets rather than sell them.

The divergence between Ethereum and Bitcoin

Unlike Ethereum, where long-term holders are increasing their grip on the supply, Bitcoin is experiencing an 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, representing a value of $10.1 billion. Although this rate slowed in June, the phenomenon remains notable.

This divergence between the two main cryptos highlights different market strategies and perceptions. Ethereum holders seem to be betting on long-term stability and valuation, while Bitcoin holders choose 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.

Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d’une certification consultant blockchain délivrée par Alyra, j’ai rejoint l’aventure Cointribune en 2019.
Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l’économie, j’ai pris l’engagement de sensibiliser et d’informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu’elle offre. Je m’efforce chaque jour de fournir une analyse objective de l’actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.