In a recent tweet, on-chain analytics platform IntoTheBlock shared a chart that highlights the long-term holder ratios for Ethereum and Bitcoin. Alongside its tweet, IntoTheBlock posted a graphic displaying the “hodler ratios” of these two major cryptocurrencies.
Currently, 74.7% of Ethereum addresses are long-term holders, significantly outpacing Bitcoin, IntoTheBlock stated. This marks a significant development in the crypto space, as Bitcoin has traditionally been viewed as the primary asset for long-term investment.
This chart highlights the long-term holder ratios for Ethereum and Bitcoin.
Currently, 74.7% of Ethereum addresses are long-term holders, significantly outpacing Bitcoin. This trend is likely to hold until Ethereum approaches its all-time high and holders start taking profits. pic.twitter.com/mZzWI6HVr6
— IntoTheBlock (@intotheblock) January 9, 2025
The recent trend reflects a substantial shift in Ethereum’s investor base, showing a growing trend toward long-term holding rather than short-term speculation.
This trend could be attributed to a variety of factors, including staking, which encourages holders to lock up their assets for extended periods, hence lessening selling pressure. The Shanghai/Capella update, also known as Shapella, allowed Ethereum staking withdrawals on April 12, 2023. This upgrade marked a significant milestone for the Ethereum network, completing the move from proof of work to proof of stake.
Furthermore, Ethereum’s ecosystem has grown significantly, with decentralized finance (DeFi), non-fungible tokens (NFTs) and smart contracts increasing demand for the platform.
Ethereum price action remains key determinant
While the long-term holding trend is strong, the report from IntoTheBlock suggests that this behavior could shift if Ethereum’s price approaches its previous all-time high. Historically, crypto investors tend to take profits when prices hit significant milestones.
“This trend is likely to hold until Ethereum approaches its all-time high and holders start taking profits,” IntoTheBlock stated. However, the current long-term holding trend indicates that most investors might be committed to Ethereum’s future growth.
At the time of writing, Ethereum was down 1.35% in the last 24 hours to $3,301, amid an ongoing sell-off on the crypto market. Ethereum is on track for its fourth day of losses if it ends in the negative today, following highs of $3,746 on Jan. 6.
The slide resulted in a loss of support at the daily SMA 50 at $3,580 and a low of $3,206 in Wednesday’s trading session, around where the ETH price trades currently.
