On-chain data shows that HODLing sentiment on the Ethereum network increased over the course of 2024, while this sentiment on Bitcoin lost strength.
75% of all Ethereum addresses are long-term holders
In a new article on X, market information platform IntoTheBlock explained how Ethereum and Bitcoin compare in terms of long-term holders.
“Long Term Holders” (LTH) refer to addresses that have been carrying their coins for over a year, without having involved them in a single transaction.
It is a statistical fact that the longer an investor holds their coins, the less likely they are to sell their coins at any given time, so LTHs, who hold for appreciable periods of time, can be considered quite resolute entities.
Below is the chart shared by IntoTheBlock that shows how the proportion of LTH has changed for Bitcoin and Ethereum over the past year.
Looks like ETH has surpassed BTC in terms of this metric | Source: IntoTheBlock on X
As the chart shows, Bitcoin started 2024 with a higher proportion of addresses qualifying as LTH than Ethereum. However, during the first months of the year, a shift began to occur as ETH’s HODLer percentage increased while BTC’s decreased.
It did not take long for the second cryptocurrency in terms of market capitalization to overtake the first in this indicator. Ethereum started the year with less than 60% of its investors belonging to the LTH group, but with the growth in HODLing sentiment that has occurred throughout the year, that figure now stands at 75%. .
At the same time, Bitcoin’s LTH percentage has continuously declined, but the magnitude of the decline has not been considerable. Over 62% of cryptocurrency investors are currently sitting on tokens that have been inactive for over a year.
The fact that more investors are becoming diamond dealers on the Ethereum network can naturally be positive for the price of the asset, as it suggests that there are fewer holders willing to part with their tokens. Bitcoin’s decline, on the other hand, indicates a weakening of resolve, which could end up being bearish.
Furthermore, the cryptocurrency market is heading into the end of 2024 on a cold note in terms of trading volume, as highlighted by on-chain analytics firm Santiment in an article
The trend in the trading volume for the various segments of the digital asset sector | Source: Santiment on X
In the chart above, data relating to the combined trading volume of different market segments is presented. He It seems that all market participants, including large caps like Bitcoin and Ethereum, have experienced a decline in trading activity recently..
Historically, low interest in the market has generally meant a flat trajectory for the prices of different coins.
BTC Price
Ethereum has been consolidating sideways since its crash earlier this month, with its price still trading around $3,350.
The price of the coin seems to have been following a downtrend in recent days | Source: ETHUSDT on TradingView
Featured image from Dall-E, Santiment.net, IntoTheBlock.com, chart from TradingView.com
