Ether Long-Term Holders Surge as Bitcoin Declines

The number of long-term Ether (ETH) holders has steadily increased throughout 2024, reflecting growing confidence in the asset as the year ends. According to a Dec. 30 post by IntoTheBlock, 75% of Ether holders now qualify as long-term, compared to 59% in January.

In contrast, the percentage of long-term Bitcoin (BTC) holders has dropped from 70% to 62% over the same period.

By the Numbers

As of December 30:

• Ethereum: 75.06% of holders qualify as long-term.
• Bitcoin: 62.31% of holders qualify as long-term.

IntoTheBlock defines long-term holders as those holding an asset for over a year. This shift in metrics suggests heightened confidence in Ethereum compared to Bitcoin heading into 2025.

Ethereum’s Growing Popularity

Ether’s increasing appeal is bolstered by rising inflows into spot Ether ETFs, which doubled in December.

• November: $1 billion in net inflows.
• December: $2.1 billion in cumulative inflows.

This surge points to institutional confidence in ETH, likely driven by:

• Staking Rewards: A key feature added to Ether ETFs.
• Regulatory Optimism: Analysts predict more favorable oversight under a potential Trump administration, with expectations of an SEC overhaul and increased CFTC involvement.
• Demise of “Financial Nihilism”: A cultural shift as crypto adoption matures.

Bitcoin’s Mixed Outlook

Bitcoin holders, meanwhile, have shown a decline in long-term engagement. This trend coincides with a significant price drop:

• December 16: BTC fell from $106,000 to $93,000.
• Analyst Insights: Technical analyst Ger Van Lagen attributed this drop to long-term holders cashing out during a euphoric rally.

Despite this, Van Lagen remains bullish, forecasting BTC could surpass $200,000 in the near future.

2025: A Bullish Year for Ether?

As ETH outpaces BTC in long-term holding metrics and institutional investment, market sentiment suggests Ethereum is well-positioned for growth in 2025. With key developments in ETFs, regulatory clarity, and staking, Ether could further solidify its role as a dominant force in the crypto ecosystem.