Crypto: 78% of Ethereum is held by long-term investors

A large portion of Ethereum’s total supply is now held by “diamond hands,” long-term investors who are not tempted to sell. Revealed by analytics platform IntoTheBlock, this data shows a significant increase in Ethereum reserves held by strong hands and reflects increased confidence in the longevity of the world’s second-largest crypto. This massive retention of ETH could not only stabilize the market, but also pave the way for major developments in the crypto ecosystem.

An uptrend for long-term holders

Currently, around 78% of the total Ethereum supply is held by loyal investors, who acquired their ETH over a year ago, according to recent data published by market intelligence platform IntoTheBlock.

This significant accumulation has accelerated in recent months, highlighting a growing confidence in the long-term value of Ethereum. Long-term holders, less inclined to sell their assets, contribute to increased market stability by reducing selling pressure. A dynamic that could also attract new investors, looking to position themselves on an asset perceived as more stable and reliable.

This trend is a positive indicator for Ethereum that suggests that many investors are betting on its future potential and prefer to hold their assets rather than sell them.

The Divergence Between Ethereum and Bitcoin

Unlike Ethereum, where long-term holders are increasing their hold on supply, Bitcoin is experiencing the opposite dynamic. Since the beginning of the year, long-term Bitcoin investors have reduced their exposure, selling a significant portion of their assets. In May, they liquidated about 160,000 BTC, worth $10.1 billion. While this pace slowed in June, the phenomenon is still notable.

This divergence between the two major cryptos highlights different strategies and market perceptions. Ethereum holders seem to be banking on long-term stability and valuation, while Bitcoin holders are choosing to capitalize on current gains.

In short, the increased retention of Ethereum by long-term holders could mark a turning point in the history of this crypto, positioning it as a safe haven in an often unpredictable market.

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