A leading crypto analytics firm said that long-term holders of the second-largest crypto asset are buying Ethereum (ETH) despite price struggles.
According to Lucas Outumuro, head of research at IntoTheBlock, more than 50% of all circulating Ethereum now belongs to addresses that have held ETH for more than a year.
“Addresses (“hodlers”) holding ETH for more than 1 year managed to acquire more than half of all Ether in circulation. Hodlers’ balances moved in the opposite direction to price action. Hodlers had been lowering their balances since September 2021, but started accumulating in January 2022. Since then, the balance of hodlers has grown after each major crash, reaching more than 50% of all circulating supply for the first time since 2020.”
Lucas Outumuro also said, “Ethereum’s trading volume is one-fifth compared to a year ago.” But as it turns out, this hasn’t stopped long-term believers from continuing to amass. Outumuro detailed the development as follows:
“Despite the short-term picture looking bad, long-term players continue to double their investments. On a similar note, a16z announced its $4.5 billion crypto fund, the largest crypto fund in crypto history. These investments typically target time periods in decades, not weeks. Ultimately, the realization of the crypto vision will take time, and regardless of the short-term uncertainty, long-term market participants hold their faith.”
The analyst added that Ethereum saw a large amount of stock market inflows last week, which is potentially a bearish indicator.
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.