Ethereum continues to set new trends in the cryptocurrency market. According to IntoTheBlock, 74.7% of Ethereum addresses are now categorized as long-term holders, surpassing Bitcoin’s ratio.
Role of Long-Term Holders
Long-term holders are defined as addresses that have held a cryptocurrency for over one year without significant activity such as selling or transferring. Their actions contribute to market stability by reducing short-term selling pressure and reflect confidence in the asset’s future value.
Ethereum vs. Bitcoin Holder Dynamics
Ethereum boasts a record 74.7% of its addresses classified as long-term holders, surpassing Bitcoin's ratio. This highlights Ethereum’s growing appeal as a store of value and investment asset. Historically, Bitcoin has been seen as 'digital gold', but its dominance is being challenged by Ethereum.
Reasons for Ethereum's Long-Term Appeal
Ethereum offers utility beyond a store of value with support for DeFi, NFTs, and smart contracts. Its EIP-1559 upgrade introduced a burn mechanism, making it deflationary and encouraging long-term holding. The transition to Proof-of-Stake adds staking rewards, further promoting long-term investment.
The rise of Ethereum’s long-term holders surpassing Bitcoin marks a significant milestone in the cryptocurrency market. This trend highlights Ethereum’s evolution from a speculative asset to a trusted store of value with real-world utility.
