The amount of Ethereum (ETH) owned by long-term holders has reached a new milestone, surpassing 70% since Dec. 1.
According to blockchain analytics firm IntoTheBlock, this is significant as it puts Ethereum ahead of Bitcoin (BTC) in terms of long-term holdings, which hovered just below 70%.
Some market watchers see the increase in the proportion of ETH held by long-term holders as a sign of confidence in the cryptocurrency’s long-term potential.
This record comes amid predictions that Ethereum will outperform Bitcoin in the near future. Well-known crypto analyst Raoul Pal has reiterated his previous prediction that ETH and BTC will repeat their 2021 cycle in 2024, with ETH outpacing BTC’s performance.
In that year, ETH grew by 254% compared to Bitcoin’s 45% after initially lagging behind.
Pal’s outlook is supported by JPMorgan analysts who forecast that ETH will outperform BTC and other digital assets in market price performance by 2024.
This positive outlook for ETH is tied to the upcoming EIP-4844 upgrade, known as protodanksharding, which is expected to significantly enhance Ethereum’s network performance.
Despite Ethereum’s current price still lagging behind Bitcoin, analysts believe the recent performance of altcoins and L2 projects suggests an impending ETH rally. The current price of ETH is $2,300, representing a 4.3% increase over the past seven days and an 88.6% increase over 12 months.
Ethereum co-founder Vitalik Buterin has recently raised eyebrows by transferring 500 ETH, valued at over $1 million, to Coinbase, according to onchain analysts. This follows a series of significant transfers made by Buterin in September and his statement in October that he hasn’t sold Ether for personal gain since 2018.
The recent activity in Buterin’s Ethereum wallet led to speculation about him selling his crypto holdings, which he later clarified as being for philanthropy rather than personal gain.