On-chain data shows that long-term holders of Ethereum have recently increased their total share of the cryptocurrency’s supply.
Ethereum HODLers Currently Own Most ETH Assets
According to data shared by market intelligence platform IntoTheBlock in a post on X, the supply of long-term holders of Ethereum has been increasing recently. “Long-term holders” (LTHs), as defined by IntoTheBlock, refer to ETH investors who bought their ETH more than a year ago.
Statistically, the longer an investor holds on to their money, the less likely they are to sell at any time. As such, these LTHs, which tend to be held for a long time, include investors who may have been sold in the market.
Another way to keep track of the behavior of these HODLers is to total the amount of supplies they own. The chart below shows the trend in this supply of Ethereum since the beginning of the year 2024.
Looks like the value of the metric has been going up over the last few months | Source: IntoTheBlock on X
As seen in the graph above, Ethereum LTH supply has been riding an uptrend this year so far. This increase has continued over the past few weeks, as the metric has seen even sharper jumps than usual.
Something to be aware of, is that when this indicator goes up, it doesn’t mean that these HODLers are buying at the moment. Rather, it means that some overlap has occurred in the past year and these characters are now old enough to be part of the group.
Nevertheless, the increase in the index is still a natural sign of cryptocurrency, as it suggests that HODLing behavior is increasing among investors.
After the recent surge, Ethereum LTHs hold about 78% of the entire circulating supply of the asset. This means that most of the property is currently locked in the hands of these owners who do not sell easily.
While ETH has been seeing this bullish development in terms of its LTHs, this has not been the case with Bitcoin. As the analytics company has mentioned in another X post, BTC HODLers have been spending their supply all year.
The value of the metric appears to have been going down recently | Source: IntoTheBlock on X
While buying can be delayed for one year, selling doesn’t have the same quirk attached to it. This is because coins have their age reset to zero as soon as they are transferred to the blockchain, so they are immediately removed from the pool.
In May, Bitcoin LTHs were traded for about 160,000 BTC, which is worth $10.1 billion at the current exchange rate. Their sales slowed down last month, however, as they distributed about 40,000 BTC ($2.5 billion).
Trading currency of ETH
At the time of writing, Ethereum is floating around $3,500, up more than 5% in the past seven days.
The price of the asset seems to have been on the rise over the last day or so | Source: ETHUSD on TradingView
Featured image from Dall-E, IntoTheBlock.com, chart from TradingView.com
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