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Volatility in the cryptocurrency market never lasts long, and we witnessed the same in 2024. While Bitcoin fell from its all-time high of over $108,000 to $93,000 in December, the price of Ethereum was on the rise.
Data from IntoTheBlock paints a compelling picture: there are significantly more long-term holders of Ethereum, 59% in January and 75% by the end of the year.
On the other hand, long-term Bitcoin holders decrease from 70% to 62%. Could this shift signal a changing of the guard?
ETH dominates long-term holders: 75% and growing
Ethereum’s long-term holder base expanded significantly in 2024, reflecting growing confidence in the asset.
According to data from IntoTheBlock, shared on Xu (formerly Twitter), 75.1% of Ethereum wallets have held their tokens for more than a year as of December 30. That’s a sharp increase from 59% in January — a 27% increase in just 12 months.
This growth was not accidental. Spot Ether ETFs, which gained momentum in November, doubled inflows from $1 billion to $2.1 billion by December.
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These funds included investment features, offering institutional investors a lucrative way to earn returns while holding ETH. Result? A good cycle of demand and retention.
In contrast, the base of long-term Bitcoin holders fell from 70% in January to 62.3% by the end of the year. The decline was largely attributed to profit taking during BTC’s euphoric rally to $106,000.
Analysts like Gert Van Lagen have noted a “drop top,” where long-term holders cashed out, triggering a correction in Bitcoin’s price action.
Regulatory headwinds favor Ethereum price
The Ethereum ecosystem benefits from further advances in regulation. Talk of new SEC reforms and escalating CFTC oversight have given more credibility to Ether-related products.
Analysts believe these regulatory moves have played a role in boosting institutional confidence.
Meanwhile, Bitcoin has faced its own challenges. The Crypto Fear and Greed Index fell to 65 in December, signaling a cooling of market sentiment. While BTC remains the king of cryptocurrency, the shift in sentiment underscores Ethereum’s growing appeal among investors.
Price Action: BTC Price Vs. Ethereum price
Bitcoin’s correction in December grabbed a lot of headlines. After hitting a record high of $106,000 in the middle of the month, BTC fell 12.3% to close the year at $93,000.
The sell-off was significant, but did not shake analysts’ long-term optimism. Van Lagen still sees a potential increase of up to $200,000, albeit with a slower climb.
Ethereum, meanwhile, traded at $3,418 as of December 30, showing resilience despite the broader market pullback.
As reported by The Coin Republic, TOTAL3, which tracks the altcoin market excluding Bitcoin and Ethereum, is approaching a 2021 peak of $1.13 trillion. This suggests that a breakout phase could be on the horizon, further boosting ETH’s prospects.
Why this is important
The increasingly prominent role of Ethereum’s long-term holders has also been subject to changing market trends. Now the market is controlled not only by Bitcoin, but also by other significant cryptocurrencies.
Ethereum is writing its own script through staking, institutional adoption and progress in regulation.
While BTC remains the heavyweight champion, Ethereum’s price makes a strong case for itself as a middleweight contender in the market.
