Ethereum Outpaces Bitcoin as Long-Term Holders Soar to 74.7%

The long-term holder ratios for Ethereum (ETH) and Bitcoin (BTC) over time show a distinct trend in favor of the former.

As of now, 74.7% of Ethereum addresses belong to long-term holders, a figure that surpasses Bitcoin’s long-term holder ratio, which is hovering at just over 60%

Ethereum Leads in Holder Ratios

According to the latest data compiled by IntoTheBlock, the latest trend suggests that Ethereum holders exhibit a growing tendency to retain their assets for extended periods, likely reflecting confidence in ETH’s trajectory. The on-chain analytic platform stated that this trend is likely to continue until the leading altcoin nears its previous all-time high, at which point profit-taking behavior among holders could cause a decline in these ratios.

It is important to note that this trend of long-term ETH holders consistently increased throughout 2024 as well. During this period, the number of Bitcoin holders, on the other hand, declined.

In fact, IntoTheBlock’s previous data revealed that Ethereum’s long-term holder percentage climbed from 59% at the start of the year to 75% by the end of 2024. At the same time, Bitcoin saw its proportion of long-term holders decline steadily from about 70% to 62%.

Moreover, the choppy price action briefly resulted in Bitcoin’s plunge below $92,000 this week. The price has since recovered modestly as Bitcoin trades a little above $94,000. However, Bitcoin’s Funding Rate, which sheds light on the demand within the derivatives market, is still low.

Bitcoin Funding Rates Fall While Ethereum Eyes a Rally

As explained by CryptoQuant, for any price surge to be sustainable, Funding Rates must reflect strong demand. While a delayed increase in these rates during a rally isn’t uncommon, their absence raises questions about the market’s underlying strength. During the recent Bitcoin rally, Funding Rates spiked midway, indicating a delayed influx of demand.

However, these rates fell sharply after Bitcoin was rejected at the $108,000 resistance level last week. Such a trend signaled a weakening market sentiment and a waning bullish momentum. If Bitcoin fails to hold above the critical $90,000 support, it risks increased selling pressure and potentially deeper corrections.

Meanwhile, crypto analyst Ali Martinez revealed that Ethereum appears to be following an ascending parallel channel. Within this pattern, a potential dip to the lower boundary at $2,800 could serve as a key support level and a launchpad for a significant rally, possibly propelling the altcoin toward the $6,000 mark.