A leading crypto analytics firm says long-term holders are buying into Ethereum (ETH) despite the second-ranked crypto asset’s price struggles.
According to IntoTheBlock’s head of research, Lucas Outumuro, more than 50% of all the Ethereum in circulation now belongs to addresses that have been holding ETH for more than one year.
“Addresses that have been holding ETH for over 1 year (‘hodlers’) have managed to acquire over half of all Ether in circulation.
Hodlers’ balances have moved inverse to price action.
Hodlers had been decreasing their balances since September 2021, but began accumulating in January 2022.
Since then, hodlers’ balance has grown following each large crash, reaching over 50% of all circulating supply for the first time since 2020.”
Explains Outumuro,
“Despite of the near-term picture looking grim, long-term players continue to double down. On a similar note, a16z announced their $4.5 billion crypto fund, the largest ever in crypto’s history. These investments typically target time horizons in decades, not weeks. Ultimately, it will take time for crypto’s vision to come into fruition and regardless of the short-term uncertainty, long-term market participants maintain their conviction.”
The analyst notes Ethereum saw massive amounts of exchange inflows in the past week, a potentially bearish indicator.
Ethereum is trading at $1,731 at time of writing, down more than 11% in the past seven days.
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