Ethereum Once Again Dominates Bitcoin: Holder Confidence at Its Peak!

For the second time in the history of crypto, Ethereum (ETH) has surpassed Bitcoin (BTC) in the percentage of long-term holders. This crucial measure demonstrates the growing confidence of investors in the future of the Ethereum network. Let’s examine the reasons for this promising development.

Ethereum Holders More Loyal Than Bitcoin’s

This new dominance of Ethereum confirms the trend observed in recent months of an increasing share of long-term holders, despite a sluggish market. According to U.Today, investors continue to accumulate ether, convinced of Ethereum’s potential.

Several factors are motivating this sustained interest. First, the rapid development of the network is promising. The migration to Proof-Of-Stake and the advent of layer 2 solutions strengthen confidence in the network’s ability to scale.

Furthermore, the Ethereum ecosystem continues to welcome innovative projects in DeFi, NFTs, and the metaverse, attracting new users. This virtuous dynamic encourages long-term investment.

Most importantly, many believe that Ethereum has not yet fully expressed its potential, unlike mature Bitcoin. While the latter kicked off 2024 with a bang, Ethereum is still lagging 50% below its record. A clear opportunity for some patient investors, convinced of massive long-term gains.

These enticing long-term prospects are motivating an increasing number of holders to keep their tokens for several years.

Risks to Watch For

Although it is generally good news for Ethereum, this growing loyalty also presents a short-term risk. Indeed, a larger portion of the ETH supply being locked up for the very long term can reduce the available liquidity and negatively affect price dynamics.

For now, this doesn’t seem to be a problem as sentiment remains positive for Ethereum. However, this potential excess must be monitored in the future.