Ethereum Long-Term Holders Secure 78% of ETH Supply as HODLing Rises

• Ethereum’s long-term holders have been increasing their share of the cryptocurrency’s supply, reflecting enhanced investor confidence.
• This upward trend in long-term holding indicates a reduction in market volatility and potential for stable growth.
• A recent data report highlights that approximately 78% of Ethereum’s current circulating supply is held by these long-term investors.

Ethereum long-term holders are accumulating more of the cryptocurrency’s supply, signaling potential bullish trends and reduced market volatility.

Ethereum HODLers Currently Hold Majority of the Supply

The latest data from market intelligence firm IntoTheBlock reveals an increase in the supply held by Ethereum’s long-term holders. Defined as investors who have maintained their positions for more than a year, these HODLers are becoming a significant force in the Ethereum market.

Insights from Holding Trends

Historically, long-term investors are less likely to liquidate their assets, fostering market stability. The steady rise in the proportion of Ethereum held by these investors is visible in recent data. The trend suggests that a lot of Ethereum bought a year ago has now transitioned into the long-term holder category.

This developing trend highlights the potential for a sustained bullish market, as it reflects increased confidence and reduced selling pressure. Remarkably, the long-term holders now control around 78% of Ethereum’s circulating supply, underscoring their growing influence.

Comparative Analysis: Ethereum vs. Bitcoin

While Ethereum is witnessing a positive trend among its long-term holders, the scenario appears different for Bitcoin. Recent reports indicate that Bitcoin HODLers have been reducing their holdings throughout the year, contrasting Ethereum’s trend. This divergence underscores different investor behaviors and market dynamics between the two leading cryptocurrencies.

Market Behavior of Bitcoin Long-Term Holders

Bitcoin’s long-term holders sold approximately 160,000 BTC in May, equivalent to $10.1 billion at current exchange rates. Although the selling pace slowed to 40,000 BTC ($2.5 billion) in the following month, these significant sales indicate a shifting sentiment among Bitcoin investors. The decreasing holdings among Bitcoin’s long-term holders could contribute to increased market volatility for BTC.

Ethereum’s Market Performance

As of the latest market update, Ethereum’s price is around $3,500, reflecting a 5% increase over the past week. This price movement aligns with the rising trend among long-term holders, possibly suggesting enhanced market stability and investor confidence.

Conclusion

The expanding share of Ethereum held by long-term investors signals a positive outlook for the cryptocurrency, potentially leading to reduced volatility and sustained growth. In contrast, Bitcoin’s market dynamics show a different trend, with a notable decrease in long-term holdings. As Ethereum continues to attract long-term holders, its market performance and investor confidence are poised for further strengthening.