Surge in Ethereum Long-term Holders: Will Prices Rise in 2025?

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The cryptocurrency market in 2024 remains significantly volatile, despite Bitcoin (BTC) experiencing a pullback from its historic high of $108,000, Ethereum (ETH) has shown a steady growth momentum. Particularly driven by the increase in long-term holders and favorable regulations, the outlook for ETH is garnering considerable attention.

Surge in Long-term Holders

According to data provided by IntoTheBlock, Ethereum's long-term holders saw significant growth in 2024. By December 30, 75.1% of Ethereum wallet holders had held the asset for over a year, up from 59% at the beginning of the year, marking a 27% increase. This change indicates a significant boost in investor confidence in Ethereum. An increase in the proportion of long-term holders typically suggests that investors are more willing to benefit from future price increases, reducing selling pressure.

Increase in Long-term Holders: In 2024, the group of long-term holders of Ethereum has expanded significantly, reflecting market optimism towards Ethereum.

Market Confidence: As the proportion of long-term holders increases, ETH has gradually detached itself from short-term volatility, further consolidating its market position.

Comparison of ETH and BTC

During the same period, the proportion of Bitcoin's long-term holders decreased from 70% in January to 62.3%, primarily due to profit-taking during Bitcoin's rise to $106,000. While the proportion of long-term holders in Bitcoin has declined, the growth trend in ETH reveals a different market sentiment. This indicates that ETH's attractiveness in the eyes of investors may be gradually rising, especially considering its close ties to innovative applications such as DeFi and NFTs.

Advantages of the Ethereum Ecosystem

Spot ETH ETF: The launch of the spot Ethereum ETF in November significantly boosted market demand for Ethereum and further increased institutional investor confidence. The inflow of this ETF doubled in December, rising from $1 billion to $2.1 billion, providing institutions with staking capabilities, further enhancing the demand and retention rate for ETH.

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