Long-term holding trends in the cryptocurrency market have taken an intriguing turn this year as ethereum surpassed bitcoin in holding such investors.
Despite bitcoin's 122% rise compared to ethereum's 48% growth last year, the surge in long-term holders of the latter highlighted the growing market confidence as 2025 approaches.
ethereum Shows Higher Long-Term Holder Retention
According to IntoTheBlock <a target="_blank" href="https://x.com/intotheblock/status/1873368615459627377?” target=”_blank” rel=”noopener” data-wpel-link=”external”>dataThe percentage of long-term Ether (eth) holders has consistently surpassed that of bitcoin (btc) investors throughout 2024. The year-to-date trend indicates a decreasing proportion of long-term bitcoin holders, currently It stands at a little more than 62%.
On the other hand, long-term eth holders started the year with a notable increase, thus outperforming their btc counterparts early on and stabilizing at 75.06%. This divergence in investor behavior, with ethereum experiencing higher retention among long-term participants compared to bitcoin over the past year.
This change comes even as ethereum did not reach its all-time high price like bitcoin. However, it is important to note that the world's largest altcoin saw many other developments. For example, Ether spot ETFs received approval, sparking interest without causing a major price rally. Anthony Sassano, a prominent ethereum advocate and educator, <a target="_blank" href="https://x.com/sassal0x/status/1873156871919644696″ target=”_blank” rel=”noopener” data-wpel-link=”external”>projected that Ether ETFs could see net inflows exceeding $50 billion by 2025.
In addition to making cryptocurrencies a key part of his campaign, President-elect Donald Trump also supported the “World Liberty Financial” DeFi platform, which was built on ethereum. This reflects that ethereum is a strong contender in the DeFi space despite an avalanche of alternatives.
On the technological side, ethereum became more affordable after the Dencun upgrade, which introduced proto-danksharding which involves reducing transaction fees on Layer 2 solutions to offer users faster and cheaper alternatives to the mainnet .
bitcoin in accumulation zone?
Meanwhile, the crypto Fear & Greed Index, which measures market sentiment, <a target="_blank" href="https://alternative.me/crypto/fear-and-greed-index/” target=”_blank” rel=”noopener” data-wpel-link=”external”>abandonment to 65 on December 30, the lowest level since October 15, amid bitcoin's more than 12% drop to $93,000 in the past two weeks. After reaching a high of 94 in November, the index remained above 70 until December, boosted by optimism over the US election results in favor of cryptocurrencies before the recent drop.
However, author James Williams <a target="_blank" href="https://x.com/GoingParabolic/status/1873491933500485709″ target=”_blank” rel=”noopener” data-wpel-link=”external”>stated that bitcoin has re-entered its accumulation zone, and a possible accumulation phase could be ahead of a significant price movement. The investor predicted a period of consolidation that would last a few weeks, which could pave the way for a breakout. Confident in bitcoin's trajectory, he predicted a price of $131,500 or more by the first quarter of 2025, calling it “inevitable.”
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