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On-chain data shows that HODLing sentiment on the Ethereum network has grown during 2024 while that sentiment on Bitcoin has lost strength.
75% of all Ethereum addresses are owned long term
In new mail On X, market intelligence platform IntoTheBlock talked about how Ethereum and Bitcoin compare to each other in terms of their long-term holders.
the “Long term ownersLTHs refer to addresses that have been holding their coins for more than a year, without involving them in a single transaction.
It is a statistical fact that the longer an investor holds their coins, the less likely they are to ever sell their coins, so it can be assumed that LTHs, which hold for long periods, are quite assertive entities.
Below is the chart shared by IntoTheBlock that shows how the ratio of LTHs relative to Bitcoin and Ethereum has changed over the past year.
Looks like ETH has surpassed BTC in terms of this metric | Source: IntoTheBlock on X
As shown in the chart, Bitcoin started 2024 with a higher percentage of its addresses qualifying as LTHs than Ethereum. However, in the first few months of the year, a shift started to happen as ETH’s HODLer ratio rose while BTC trended lower.
It did not take long before the cryptocurrency that ranks second in terms of market capitalization moved ahead of the first place in this index. Ethereum started the year with less than 60% of its investors in the LTH group down, but with the growth in HODLing sentiment that has occurred throughout the year, the number stands at 75% today.
At the same time, Bitcoin’s LTH ratio has declined continuously, but the magnitude of the decline has not reached a large extent. Over 62% of cryptocurrency investors are currently sitting on tokens dormant for more than a year.
The fact that more investors are becoming diamond hands on the Ethereum network is naturally positive for the price of the asset, as it indicates that there are fewer token holders willing to part with their tokens. On the other hand, a decline in Bitcoin indicates weak resolve, which could end up in a downward trend.
In some other news, the cryptocurrency market is headed toward a cool end to 2024 in terms of… Trading volumeas noted by on-chain analytics firm Santiment in X mail.
The trend in the trading volume for the various segments of the digital asset sector | Source: Santiment on X
In the chart above, aggregated trading volume data for different market sectors is displayed. He – she It seems that all aspects of the market, including large companies like Bitcoin and Ethereum, have seen a decline recently Trading activity.
Historically, low interest in the market has generally meant a flat path for the prices of various currencies.
Bitcoin price
Ethereum has been consolidating sideways since its collapse earlier in the month, with its price still trading around $3,350.
The price of the coin seems to have been following a downtrend in recent days | Source: ETHUSDT on TradingView
Featured image from Dall-E, Santiment.net, IntoTheBlock.com, Chart from TradingView.com
