Recent data shows that total HODlers of Ether (ETH), Ethereum’s native crypto, have exploded in recent months. A surge remarkably driven by crypto staking which allowed their number to reach a peak even exceeding the total of bitcoin (BTC) HODlers.
BTC HODlers, overtaken for the first time by those of Ethereum
ETH HODlers are experiencing a remarkable rise in power driven by the crypto platform ecosystem around staking. This is what certain data compiled on this subject reveal, particularly the metric known as the Hodler Ratio.
The latter shows that over the last twelve months, the proportion of ETH held by addresses now amounts to almost 72% of total ETH holders. This performance is, to say the least, a record.
Indeed, this level had not been reached since 2018. But in addition, this change, in the Hodler ratio, marks a new overtaking of Bitcoin by Ethereum in October. This, after a previous exceedance in August.
Furthermore, the fact that Ethereum overtakes Bitcoin, in the field of HODlers, fits into another context. That of an increase in the number of long-term investors in Bitcoin. The crypto giant is currently experiencing the largest gap ever recorded between its long-term holders and its short-term holders.
A trend supported by crypto staking
It appears that the driving force behind Ethereum’s soaring Hodler ration is no coincidence. It would be closely linked to the growth of staking activities throughout the year which is drawing to a close. Staking rewards provide a compelling incentive for ETH holders to lock their funds into the network for extended periods of time.
This hypothesis is notably defended by Lucas Outumuro, research manager at IntoTheBlock. According to him, the increase in the number of long-term ETH holders can be attributed to the significant expansion of staking in 2023.
Throughout this period, the amount of ETH staked nearly doubled, making up approximately 24% of the total supply. An increase, associated with an average holding period of more than one year, contributing significantly to the rise in the Hodler ratio.
Furthermore, in addition to the increase in the number of HODlers, Ethereum whales are also experiencing significant growth. Addresses holding more than 1% of the circulating ETH supply increased 12 percentage points this year to 34.6%. This data, compiled by IntoTheBlock, includes staking contracts, which cover a wide range of individual holders.
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