- The percentage of long-term ETH holders has set a new record, surpassing Bitcoin.
- The growth comes despite the asset underperforming under major cryptocurrencies.
- ETH’s on-chain metrics support predictions that the asset would outperform Bitcoin in 2024.
As 2023 ends, most major crypto assets look set to shake off price declines weathered during the extended bear market cycle amid excitement over a potential spot Bitcoin ETF approval and quantitative easing by the Fed. While observers contend that Ethereum (ETH) is lagging in the recent rally, recent on-chain metrics suggest that a shift might be imminent.
ETH Percentage of Long-Term Holders Surpasses Bitcoin’s
In an X post on Sunday, December 24, crypto analytics firm IntoTheBlock reported that the number of investors holding ETH for over one year reached a record of 70% in December 2023. Specifically, the data shows that as of December 24, the percentage of ETH investors that have held on for over one year has surpassed 74%, greater than Bitcoin‘s just over 70%.
The amount of $ETH owned by long-term hodlers reached a record of over 70% in December pic.twitter.com/znKGxTAkvU
— IntoTheBlock (@intotheblock) December 24, 2023
The data suggests that most Ethereum holders are confident about the asset’s long-term potential. Furthermore, under these circumstances, increased demand for the asset could lead to a supply shock that could drive prices higher.
The metric comes despite Ethereum’s slow-paced market growth relative to competing assets like Bitcoin and Solana in what many believe to be the beginning of a bull market cycle.
ETH Underperforms Other Majors in 2023
In an X post on Saturday, December 23, IntoTheBlock noted that Ethereum’s market cap has grown by 85% year-to-date (YTD). While the figure represents significant growth, as highlighted by the crypto analytics firm, it still pales compared to other major crypto assets.
For example, Bitcoin, which ranks above Ethereum, has seen its market cap grow by 163%. Similarly, Solana, which sits directly below Ethereum, excluding stablecoins, has seen a 744% increase in market cap.
Ethereum grew ~85% in market cap in 2023, slightly underperforming other major assets despite upgrades, ETF applications and showing robust adoption metrics. pic.twitter.com/cdvV085cxz
— IntoTheBlock (@intotheblock) December 23, 2023
These market cap gains have also been reflected in price. While ETH is up about 91% YTD, Bitcoin and Solana are up 163% and 1120%, respectively.
ETH’s growing on-chain metrics, despite its recent underperformance relative to other major crypto assets, appear to support expert predictions that the asset could be set to outperform Bitcoin in 2024.
On the Flipside
- The percentage of Bitcoin holders holding for over a year is still significantly high.
- On December 22, prominent crypto analyst Ali Martinez noted that investors had sent about 200,000 ETH worth approximately $460 million to exchanges, hinting at mounting selling pressure.
Why This Matters
The data suggests that ETH holders are significantly bullish on the asset despite recent price struggles.
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