Ethereum Outpaces Bitcoin in Long-Term Holder Growth

Ethereum has emerged as the dominant cryptocurrency in terms of long-term holder ratios, with 74.7% of Ethereum (ETH) addresses now belonging to long-term investors. This surpasses Bitcoin’s (BTC) long-term holder ratio, which currently stands at just over 60%. The shift highlights growing confidence in Ethereum’s future as investors increasingly prioritize holding ETH over BTC.

Ethereum Leads Long-Term Holder Ratios

Recent data from IntoTheBlock underscores Ethereum’s impressive growth in long-term holder percentages, which have steadily increased throughout 2024. Starting the year at 59%, Ethereum’s long-term holder ratio climbed to 75% by the end of the year. In contrast, Bitcoin’s long-term holder percentage fell from 70% to 62% during the same period.
The upward trajectory for Ethereum suggests heightened confidence among investors in the altcoin’s potential. Analysts believe this trend will persist until Ethereum nears its previous all-time high, at which point some profit-taking may occur. Bitcoin, on the other hand, continues to face challenges, with its price hovering above $94,000 after briefly dipping below $92,000 earlier this week.

Bitcoin Funding Rates Decline as ETH Eyes a Rally

Ethereum’s positive sentiment stands in stark contrast to Bitcoin’s struggles in the derivatives market. Bitcoin’s Funding Rates, a key indicator of demand, have remained subdued, raising concerns about the sustainability of its recent price recovery. After being rejected at the $108,000 resistance level, Bitcoin faces the risk of further corrections if it fails to hold above the critical $90,000 support.
Meanwhile, Ethereum appears poised for a potential breakout. Analyst Ali Martinez notes that ETH is following an ascending parallel channel, with a key support level at $2,800. A rebound from this level could trigger a rally that propels Ethereum toward the $6,000 mark, further solidifying its position as a favorite among long-term holders.

With Ethereum consistently outperforming Bitcoin in long-term holder growth, the altcoin continues to attract attention as a reliable investment for those eyeing sustained gains in the evolving crypto market.

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