According to on-chain data, more than 70% of Ethereum supply has seen no movement in over a year, a new record for the network.
Ethereum HODLers now control over 70% of the asset’s supply.
According to data from market intelligence platforms: Into the BlockTotal supply owned by long-term ETH holders has reached a new all-time high.
The analytics firm defines a “long-term holder” (LTH) as an address that has been holding coins for at least a year. Statistically, the longer a holder keeps their coins, the less likely they are to sell them at any point.
Therefore, LTH is the hand with the lowest probability of moving coins. This cohort really lives up to this fact. This is because participants rarely sell, even during profitable rallies or severe crashes, regardless of what is happening in the broader market.
For this reason, the time when LTH sells could be a time to watch. Because this suggests that the market has pushed even these diamond hands to break their resolve.
One way to track the movements of HODLers is through the total supply they have had in their wallets for at least a year.
The chart below shows LTH supply trends as a percentage of the total circulating supply of Ethereum and Bitcoin over the history of each asset.
The indicator appears to have seen a rise for both of these assets recently | Source: IntoTheBlock on X
As you can see in the graph above, the supply held by HODLers has been increasing recently for both Bitcoin and Ethereum. What’s important to keep in mind is that these increases do not indicate that these investors are currently accumulating.
Rather, what this means is that some purchases from investors occurred a year ago and the coins have now remained dormant long enough to have matured into this group.
A year ago the cryptocurrency sector was still in a bear market, so the increase in HODLer supply over the past few months has likely come from people buying at cheap bear market prices.
Although these holders have made significant profits thanks to this year’s rally, they still appear uninterested in selling. Because HODLer rates only rose for both Ethereum and Bitcoin.
Looking at the chart, we can see that the growth of the indicator has been particularly steep for ETH, as it has outpaced BTC. With over 70% of the total circulating supply locked in the hands of these LTHs, this indicator is currently hitting a new all-time high for the second-largest cryptocurrency.
ETH price
As of this writing, the price of Ethereum is hovering around $2,290, up 6% over the past week.
ETH appears to have been moving sideways recently | Source: ETHUSD on TradingView
Featured image by Kanchanara on Unsplash.com, chart by TradingView.com, IntoTheBlock.com