Ethereum Outshines Bitcoin with 74.7% Long-Term Holding Surge

• Ethereum’s long-term holders surged to 74.7%, surpassing Bitcoin’s 60%, reflecting a shift in investor confidence and strategy.
• Bitcoin faces challenges with low demand signals while Ethereum’s ecosystem thrives, driven by staking, DeFi, and rising adoption.

The crypto market is turning its head, with Ethereum at the center of that change. Recent data from IntoTheBlock highlights a striking trend: 74.7% of Ethereum addresses now belong to long-term holders, eclipsing Bitcoin’s 60% mark. The rise in Ethereum addresses reflects a growing confidence in Ethereum’s long-term potential.

This chart highlights the long-term holder ratios for Ethereum and Bitcoin.

Currently, 74.7% of Ethereum addresses are long-term holders, significantly outpacing Bitcoin. This trend is likely to hold until Ethereum approaches its all-time high and holders start taking profits. pic.twitter.com/mZzWI6HVr6

— IntoTheBlock (@intotheblock) January 9, 2025

IntoTheBlock shows that Ethereum’s holder ratios have climbed steadily while Bitcoin has taken a backseat, as explained in the last analysis. Throughout 2024, Ethereum’s long-term holder percentage surged from 59% to 75%, while Bitcoin slid from 70% to 62%.

This shift isn’t just about numbers; it signals a broader transformation in investor behavior. Ethereum’s staking model, bolstered by the Shanghai/Capella update in April 2023, has encouraged holders to lock their assets for longer periods. The ability to stake ETH lessens selling pressure and cements Ethereum’s position as a platform for innovation and growth.

Ethereum’s Rise Continues, While Bitcoin Faces Headwinds

Ethereum’s dominance extends beyond long-term holding patterns. Its ecosystem has flourished, with decentralized finance (DeFi), non-fungible tokens (NFTs), and smart contracts driving demand. These advancements make Ethereum more than just a cryptocurrency—it’s a foundation for the future of digital finance and technology.

Meanwhile, market sentiment indicates a continued upward trend as Ethereum moves closer to its all-time high. According to IntoTheBlock, the trend may be sustained until Ethereum nears its historical peak, prompting profit-taking by holders. The steadfast dedication of long-term investors underscores a strong belief in Ethereum’s potential for growth.

Bitcoin, however, faces challenges. Although its price recovered modestly to $94,000 after a brief dip below $92,000, its Funding Rate—a key indicator of demand in the derivatives market—remains low. Without a strong Funding Rate, Bitcoin’s price rally risks fizzling out, raising questions about its short-term resilience.

Bitcoin Struggles—Is It on the Brink?

Bitcoin’s recent struggles underscore the market’s uncertainty. Last week, the cryptocurrency faced rejection at the $108,000 resistance level, causing its Funding Rates to plummet. The decline signals weakening market sentiment and a loss of bullish momentum. Analysts warn that if Bitcoin falls below the critical $90,000 support level, it could face intensified selling pressure and further corrections.

In contrast, Ethereum shows signs of resilience. Analyst Ali Martinez noted that Ethereum’s price is tracking within an ascending parallel channel. A potential dip to $2,800 could act as a springboard, paving the way for a rally toward $6,000.

If #Ethereum $ETH is following an ascending parallel channel, a dip to the lower boundary at $2,800 could act as a launchpad for a move toward $6,000. pic.twitter.com/uYP6BW3DZh

— Ali (@ali_charts) January 10, 2025

The contrasting fortunes of Ethereum and Bitcoin highlight a turning point for the cryptocurrency market. While Bitcoin wrestles with demand and resistance, Ethereum’s robust ecosystem and growing long-term holder base position it as a leader in the digital asset space.

The rise of Ethereum’s long-term holders is more than a statistical shift—it reflects a broader change in how investors perceive the platform. From staking mechanisms to a thriving ecosystem, Ethereum continues to outshine its competitors.