An Unprecedented Record for Ethereum Network
New on-chain data reveals a significant milestone for Ethereum, as more than 70% of the total supply has remained dormant for more than a year. This represents an all-time high for the network, according to market intelligence platform IntoTheBlock.
Long-Term Holders Driving the Trend
IntoTheBlock defines “long-term holders” (LTHs) as individuals who have held their Ethereum for at least one year. Interestingly, the longer these holders retain their coins, the less likely they are to sell, regardless of market conditions. LTHs have consistently demonstrated unwavering conviction in their investment, maintaining their positions even during profitable rallies and market downturns. Consequently, any instances of LTHs selling become noteworthy, indicating a potential shift in the market.
Tracking HODLer Activity
One method to monitor HODLer behavior is by analyzing the combined amount of supply locked in their wallets for at least a year. This data reveals that a portion of the Ethereum supply has been dormant since it was purchased around a year ago. Notably, the significant increase in the HODLer supply over the past few months likely stems from investors who bought during the bear market, taking advantage of lower prices. Despite the substantial profits these HODLers have likely accrued during this year’s rally, they have shown no inclination to sell. As a result, Ethereum’s HODLer ratio has further risen, surpassing that of Bitcoin.
Ethereum’s Impressive Growth
Examining the chart, it is evident that Ethereum has experienced remarkable growth in this metric, surpassing Bitcoin. The current LTH ownership constitutes more than 70% of the circulating supply, establishing a new all-time high for the second-largest cryptocurrency.