Long-Term Ether Holders Surge as Confidence in ETH Grows, While Bitcoin Sees Decline

As we close out 2024, there’s a noticeable shift in the cryptocurrency market. Long-term holders of Ether (ETH) have seen a significant increase, signaling growing confidence in the Ethereum network and its future potential. Meanwhile, Bitcoin (BTC), the undisputed leader in market capitalization, has experienced a decline in its long-term holder base. Let’s break down these trends and what they mean for the broader crypto landscape.

Ethereum Long-Term Holders Surge in 2024

Data from blockchain analytics platform IntoTheBlock highlights a striking trend: the proportion of long-term Ether holders has surged throughout the year. As of December 30, a remarkable 75.06% of Ether holders have held their ETH for over a year, up from 59% in January. This marks a significant increase in the percentage of long-term holders, reflecting growing optimism about Ethereum’s future.

Long-term holders—those who retain an asset for more than a year—are seen as a reliable indicator of investor sentiment. The growing proportion of Ether holders maintaining their positions is a strong sign that investors are betting on the long-term success of Ethereum, especially as we head into 2025.

The Bitcoin Trend: A Different Story

In contrast to Ethereum, Bitcoin’s long-term holder base has seen a decline in 2024. The percentage of Bitcoin holders who have held their coins for more than a year dropped from 70% in January to 62% by the end of the year. This change may reflect some of the volatility that Bitcoin experienced over the past year, especially in December when the price corrected significantly.

Technical analyst Ger Van Lagen noted that Bitcoin’s price fell sharply in December, dropping from an all-time high of $106,000 to around $93,000. This correction was partly driven by long-term Bitcoin holders cashing out during a euphoric market phase. Despite this pullback, Van Lagen remains bullish on Bitcoin, predicting that BTC could surpass $200,000 in the near future.

ETH’s Growing Institutional Appeal

One of the driving factors behind Ethereum’s increasing long-term holder base is its growing institutional appeal. In December, spot Ether ETFs saw inflows double, reaching $2.1 billion. These strong inflows indicate rising institutional and retail interest in Ethereum, which is bolstered by several key developments. Notably, the inclusion of staking in Ether ETFs is helping to attract more investors, while the prospect of clearer regulatory oversight from the Commodity Futures Trading Commission (CFTC) adds to the optimism surrounding Ethereum’s future.

Ethereum’s increasing adoption by institutions and retail investors is a clear indicator of its growing role in the broader crypto ecosystem. Many believe that as the network continues to innovate, Ethereum will solidify its position as a leading blockchain in 2025 and beyond.

Ethereum’s Whale Dominance Continues to Grow

Another trend that is catching the eye of analysts is the increasing dominance of Ethereum whales. As of December, the top 104 Ethereum whale wallets, each holding over 100,000 ETH, now control a staggering 57% of the total Ether supply. This marks an all-time high for whale dominance and signals a growing concentration of wealth within the hands of the largest ETH holders.

Together, these top 104 wallets hold around $333 billion worth of Ether, reflecting a significant accumulation trend among large holders. This confidence among the largest ETH holders is further bolstered by Ethereum’s return to dominance in the stablecoin market, reclaiming its position as the leading blockchain for Tether (USDT) with a supply of $60.3 billion—surpassing Tron for the first time since August 2022.

Decline in Mid-Sized Holders

While whale dominance is rising, the share of Ether controlled by mid-sized holders (those with between 10,000 and 100,000 ETH) has dropped to a record low of 33.5%. Smaller wallets holding less than 100 ETH now account for just 9.19% of the total supply, marking a near four-year low. This shift indicates that more ETH is being concentrated into the hands of a smaller number of large investors, potentially giving them more control over the market.

Ethereum vs. Bitcoin: A Shifting Landscape

As 2024 comes to a close, it’s clear that Ethereum is gaining momentum while Bitcoin faces some challenges in retaining long-term holder confidence. The growing number of long-term ETH holders, the rise in institutional investment, and the increasing dominance of whales paint a promising picture for Ethereum’s future.

On the other hand, Bitcoin, despite its price volatility, remains a dominant force in the crypto market. While its long-term holder base has shrunk, it continues to be seen as a hedge against inflation and a store of value. Analysts remain bullish on Bitcoin’s prospects, particularly as the market matures and regulatory clarity improves.

What’s Next for ETH and BTC in 2025?

The outlook for both Ethereum and Bitcoin heading into 2025 is generally positive, with Ethereum likely to benefit from its growing institutional adoption, Ethereum 2.0 developments, and the increasing staking opportunities. Bitcoin, while facing some challenges in retaining its long-term holders, remains a cornerstone of the crypto market and is expected to see continued interest from both retail and institutional investors.

As we look ahead to the new year, the dynamics between these two leading cryptocurrencies will continue to evolve. However, one thing is clear: both Ethereum and Bitcoin are here to stay, and their influence on the cryptocurrency market is only set to grow.