As a seasoned analyst with years of experience in the cryptocurrency market, I have witnessed the ebb and flow of various digital assets. The trend of long-term Ethereum (ETH) holders outpacing Bitcoin (BTC) holders this year is intriguing, given the divergence in their price performance.
Over the past 12 months, BTC has seen its price more than double, while ETH has only managed a little over 45% growth. Yet, the proportion of long-term BTC holders has declined, whereas the percentage of long-term ETH holders has increased significantly. This trend is particularly noteworthy, as it suggests that investors may be more confident in Ethereum’s long-term potential compared to Bitcoin.
The network’s shift to a Proof-of-Stake consensus algorithm and the subsequent burn of Ether tokens could play a role in this trend, as it reduces the total supply of ETH over time. The fact that around $175.9 million worth of Ether has been burned since the merge is a testament to Ethereum’s ongoing evolution and growing maturity as a network.
That being said, it’s important to remember that the cryptocurrency market is notoriously volatile, and both Bitcoin and Ethereum are no exception. As I always say, never invest more than you can afford to lose, even in promising projects like Ethereum!
On a lighter note, I can’t help but wonder if the long-term ETH holders are secretly building their own private islands with their digital fortune, or maybe they’re just hodling for the memes. Only time will tell!
This year, Bitcoin’s flagship price surge of approximately 115% has overshadowed many other significant digital currencies. However, Ethereum has been discreetly attracting more long-term investors by establishing a robust foundation.
In 2024, data from cryptocurrency analytics firm IntoTheBlock indicates that a larger proportion of long-term ether investors has been growing compared to bitcoin investors, marking an interesting contrast considering their similar price trends during the past year.
Over the past year, bitcoin’s price nearly doubled, but it has recently experienced a dip. On the other hand, ether has only increased by around 45% during the same timeframe. Interestingly, the number of long-term bitcoin holders has decreased throughout the year to currently stand at about 62.3%. In contrast, the percentage of long-term ether holders has risen, now exceeding 75%.
Over the past year, this graph illustrates the proportion of investors who have held onto Bitcoin and Ether for a long period. Interestingly, while the number of long-term Bitcoin owners decreased, the percentage of long-term Ether holders went up, surpassing that of Bitcoin holders at the beginning of the year.
— IntoTheBlock (@intotheblock) December 29, 2024
currently, Bitcoin (BTC) is having difficulty surpassing the $100,000 price point again, though it remains well above its 2021 high of around $70,000. Conversely, Ethereum (ETH) has been unable to exceed its previous all-time high this year and is currently trading at approximately $3,400 after falling short of maintaining prices above the $4,000 threshold.
Over the last two years following its merger with the Beacon Chain, the availability of ether has decreased by approximately 0.02%. This shift was due to the transition from the previous Proof-of-Work consensus mechanism to the new Proof-of-Stake one.
As reported by Ultrasound Money, a platform that monitors Ethereum’s supply adjustments, approximately 53,514.62 Ether, equivalent to around $175.9 million in the second-largest digital currency by market cap, has been destroyed since the network underwent its upgrade about two years ago through a process known as burning.
1) The present amount of ether in circulation is approximately 120.4 million ETH. Since the upgrade, the network’s supply has been gradually decreasing by 0.02% every year. However, due to lower usage recently, the annual increase in supply has been about 0.31%. This means around 947,000 new ETH are generated each year, while approximately 575,000 ETH are burned annually, as indicated by platform data.
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2024-12-31 20:44