The dominance of Ethereum (ETH) over Bitcoin (BTC) in terms of the percentage of long-term holders is on the rise. This year, according to analyzes from the IntoTheBlock platform, the number of investors holding Ethereum for periods longer than a year surpassed the 70% mark, a notable achievement for the ETH blockchain network.
This game changer is remarkable, especially considering Ethereum’s performance in terms of price compared to Bitcoin. BTC, known for its track record of leadership in bullish metrics and investor confidence, has failed to maintain its prominent position in this particular aspect. The data indicates a growing tendency for Ethereum holders to bet on the long-term value of the cryptocurrency, weathering volatility and market fluctuations.
Long-term investors play a crucial role in the stability and health of any blockchain. They contribute to reducing volatility and sustaining confidence in the system, maintaining your cryptocurrencies even in periods of falling prices.
— IntoTheBlock (@intotheblock) December 30, 2023
Interestingly, this is not the first time that Ethereum has outperformed Bitcoin on this metric. On previous occasions when ETH achieved this feat, it managed to maintain the lead in this regard for several months. This trend suggests a change in cryptocurrency investors’ perception and strategy towards Ethereum.
On the other hand, an analysis of IntoTheBlock’s In/Out of the Money metric reveals that Bitcoin still has an advantage in terms of profitability. At the time of writing, 82.25% of Bitcoin addresses were profiting from the current price, compared to 76.10% of Ethereum addresses.
Interestingly, Bitcoin’s high profitability can be attributed to the loss of a large volume of Bitcoins in the cryptocurrency’s early years. This influences the metric of holders who bought at the current price, where Ethereum appears to be excelling.
About 63% of Ethereum addresses that purchased between $1,948 and $2,641 are still profiting, compared to 52% of Bitcoin addresses that purchased between $35,729 and $48,402.
At the time of publication, the price of ETH was quoted at US$2,301.19, up 0.5% in the last 24 hours.
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.