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ETH Outpaces BTC in Long
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ETH Outpaces BTC in Long
Dec 30, 2024 8:56 AM

Long-term holding trends in the crypto market have taken an intriguing turn this year as Ethereum surpassed Bitcoin in retaining such investors.

Despite Bitcoins 122% surge compared to Ethereums 48% growth in the past year, the increase in the long-term holders of the latter highlighted rising market confidence as 2025 approaches.

Ethereum Shows Stronger Long-Term Holder Retention

According to IntoTheBlock data, the percentage of long-term Ether (ETH) holders has steadily surpassed that of Bitcoin (BTC) investors throughout 2024. The year-to-date trend indicates a declining share of long-term Bitcoin holders, which currently stands at a little over 62%.

On the other hand, long-term ETH holders began the year with a notable rise, thereby outpacing their BTC counterparties early on and stabilizing at 75.06%. This divergence in investor behavior, with Ethereum seeing stronger retention among long-term participants compared to Bitcoin over the past year.

This shift comes even as Ethereum didnt hit its all-time high price like Bitcoin. However, it is important to note that the worlds largest altcoin saw plenty of other developments. For instance, spot Ether ETFs received approval, which sparked interest without driving a major price rally. Anthony Sassano, a leading Ethereum advocate and educator, projected that Ether ETFs could see net inflows exceeding $50 billion in 2025.

In addition to making crypto a key part of his campaign, President-elect Donald Trump also supported the DeFi platform World Liberty Financial, which has been built on Ethereum. This reflects Ethereum being a strong contender in the DeFi space despite a flurry of alternatives.

On the technology side of things, Ethereum became more affordable after the Dencun upgrade, which introduced proto-danksharding that involves slashing transaction fees across Layer 2 solutions to offer users faster and cheaper alternatives to the mainnet.

Bitcoin in Accumulation Zone?

Meanwhile, the Crypto Fear Greed Index, which measures market sentiment, dropped to 65 on December 30, the lowest since October 15, amid Bitcoins more than 12% decline to $93,000 over the past two weeks. After peaking at 94 in November, the index stayed above 70 through December, driven by optimism over pro-crypto US election results before the recent slump.

However, the author James Williams asserted that Bitcoin has re-entered its accumulation zone, and a potential buildup phase could be ahead of a significant price move. The investor predicted a period of consolidation lasting a few weeks, which could pave the way for a breakout. With confidence in Bitcoins trajectory, he forecasted a price of $131,500 or higher by Q1 2025, calling it inevitable.

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