The amount of Ethereum owned by long-term hodlers reached a record of over 70% in December, according to data from blockchain analytics firm IntoTheBlock.
These committed holders have refrained from selling their Ethereum stash, contributing to the altcoin’s new benchmark. The latest ITB data also reveals that Ethereum has surpassed Bitcoin in terms of the percentage held by long-term holders, with the latter a little below the 70% mark.
- HODLers, individuals who hold onto their crypto regardless of market volatility or price fluctuations, play a crucial role in maintaining the overall health of any blockchain.
- The rise in Ethereum ownership by HODLers indicates a strong belief in the asset’s long-term potential, with investors demonstrating patience and conviction despite market uncertainties.
- Despite Ethereum’s impressive 85% growth in market capitalization in 2023 and various positive developments such as upgrades, ETF applications, and “robust” adoption metrics, it has slightly underperformed compared to other major assets, as per a previous ITB analysis.
- However, experts are optimistic about the altcoin’s price trajectory in 2024.
- Glassnode co-founders Jan Happel and Yann Allemann, for one, have set a target for Ethereum, aiming for $2,500, citing “market enthusiasm.” They suggest that a more ambitious push could help Ethereum potentially climb to $2,700.
- The success of Ethereum in 2024 may depend significantly on the level of acceptance it receives from traditional finance (TradFi), according to a recent report by Messari, which suggested that the asset’s environmentally friendly image makes it appealing to Wall Street.
- Messari CEO Ryan Selkis even predicted a swift adoption of an Ethereum ETF, mirroring the trend seen with Bitcoin.