Volatility never takes a long break in the cryptocurrency market and the same has been witnessed in the year 2024. While Bitcoin fell from its all-time high of more than $108,000 to $93,000 in December, Ethereum price was on the rise.
Data from IntoTheBlock paints a compelling picture: There are significantly more long-term holders of Ethereum, 59% in January and 75% by the year-end.
On the other hand, the long-term holders of Bitcoin reduce from 70% to 62%. Could this shift signal a changing of the guard?
ETH Dominates Long-Term Holders: 75% and Counting
Ethereum’s long-term holder base expanded massively in 2024, reflecting growing confidence in the asset.
According to IntoTheBlock data, shared on X (formerly Twitter) 75.1% of Ethereum wallets held onto their tokens for over a year as of December 30. That’s a sharp increase from 59% in January—a 27% surge in just 12 months.
This growth wasn’t random. Spot Ether ETFs, which gained momentum in November, saw inflows double from $1 billion to $2.1 billion by December.
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These funds incorporated staking features, offering institutional investors a lucrative way to earn yields while holding ETH. The result? A virtuous cycle of demand and retention.
In contrast, Bitcoin’s long-term holder base slipped from 70% in January to 62.3% by year-end. The decline was largely attributed to profit-taking during BTC’s euphoric run to $106,000.
Analysts like Gert Van Lagen observed a “blow-off top,” where long-term holders cashed out, triggering a correction on Bitcoin price action.
Regulatory Winds Favor Ethereum Price
The Ethereum ecosystem benefits from further advancements in the regulation sphere. Talks on the new SEC reforms and the escalation of CFTC’s oversight provided greater credibility to Ether-related products.
Analysts believe these regulatory strides played a role in driving institutional confidence.
Meanwhile, Bitcoin faced its own challenges. The Crypto Fear & Greed Index fell to 65 in December, signaling a cooling of market sentiment. While BTC remains the king of crypto, the sentiment shift underscores Ethereum’s growing appeal among investors.
Price Action: BTC Price Vs. Ethereum price
Bitcoin’s correction in December drew plenty of headlines. After hitting a record high of $106,000 mid-month, BTC dropped 12.3% to close the year at $93,000.
The sell-off was significant but didn’t shake analysts’ long-term optimism. Van Lagen still projects a potential rally to $200,000, albeit with a slower climb.
Ethereum, meanwhile, traded at $3,418 as of December 30, showing resilience despite the broader market pullback.
As reported by The Coin Republic, TOTAL3, which tracks the altcoin market excluding Bitcoin and Ethereum, approached its 2021 peak of $1.13 trillion. This suggests a breakout phase may be on the horizon, further boosting ETH’s prospects.
Why This Matters
The increasingly prominent role played by Ethereum’s long-term holders has also been a subject of change in market trends. It is now not just Bitcoin controlling the market but other significant cryptocurrencies as well.
Ethereum is writing its own script through staking, institutional adoption, and progress in regulation.
While BTC remains the heavyweight champion, Ethereum price is making a strong case for itself as the market’s middleweight contender.
