In general, the crypto market has been in a slump for the past few months. While contrasting speculations rage on about the future of crypto, the hodlers among us are doubling down on their faith. For the most part, long-term holders continue to buy Ethereum and Bitcoin. Despite the bear market and the ridiculous marketing warfare taking place in the crypto sector, some choose to be patient. Based on recent data, over half of all Ether in circulation is now locked up in addresses who tend to be long-term holders. For now, with all the discounts, is it time to buy Ethereum? Tell us down in the comments.
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Buy Ethereum for the Long Run!
Apparently, Ethereum holders are playing a game of who can hold the longest. According to a new research by a leading analytics firm IntoTheBlock, investors are not discouraged to buy Ethereum at all. Ethereum has been struggling to maintain some key support levels at the time of writing this article.
Lucan Outumuro, the head of research at IntoTheBlock says that more than 50% of all Ethereum in circulations currently resides in addresses that have been holding ETH for more than 12 months.
“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.”
In the meantime, Ethereum (ETH) had very large amounts of exchange inflows only in the past week. The could be a significant bearish sign for ETH. Ethereum is currently trading at $1,780 at the time of writing this article which is down almost 11% since past week.
However, Outumuro explains,
“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.”
Ethereum 2.0
By the looks of it, Ethereum has continued on the disappointing plunge started by Bitcoin. However, regarding long-term ETH investments, the upcoming 2.0 upgrade coming in August may also be a motivating factor.
The transition to the proof of stake algorithm will noticeable improve network performance and open new doors for Ethereum network. Not to mention, it will protect Ethereum from upcoming regulations against gas guzzling cryptocurrencies.
Recently, Ethereum has not made any effort to encourage investors to buy Ethereum. But, all that might change sometime in August with the introduction of Ethereum 2.0
