Metrics indicate growing optimism in the Ethereum market

This year has been pivotal for Ethereum. According to the IntoTheBlock report, the share of long-term Ethereum holders is increasing, while Bitcoin’s share is decreasing. This indicates growing investor confidence in Ethereum’s future, despite market volatility.

Long-term holders

Since the beginning of 2024, the share of long-term Ethereum holders has grown from 59% to 75%, signaling increased investor interest. For Bitcoin, this figure has dropped from 70% to 62%, pointing to a decline in confidence in the cryptocurrency. These data confirm the growing interest in Ethereum from long-term investors.

Growth dynamics difference

Since the beginning of the year, Bitcoin has risen by 122%, twice breaking historical records, while Ethereum has gained 48.2%. Despite Bitcoin’s leading growth, Ethereum remains attractive to investors.

Kaiko specialists believe that the difference in growth dynamics is driven by several factors. First, some funds may have shifted to Solana due to high transaction fees on the Ethereum network. Second, the hype around meme coins and issues with staking launches in new ETH-ETFs have also impacted Ethereum’s price.

Growth prospects

Despite the aforementioned challenges, experts remain optimistic. Analyst and founder of MN Trading, Michaël van de Poppe, stated that Ethereum’s market position could begin to strengthen as early as January. A breakout at the 0.4 level in the ETH/BTC pair could become a catalyst for altcoin growth, especially those connected to Ethereum’s ecosystem.

While Ethereum’s growth has been slower than Bitcoin’s, it continues to attract long-term investors. Problems with high fees and the launch of new products may be temporary. In 2024, Ethereum’s position could strengthen if it surpasses key levels against Bitcoin.