Record numbers of long-term Ethereum holders achieved
The proportion of Ethereum (ETH) held by long-term investors has reached a new milestone, surpassing 70% since December 1st. This achievement puts Ethereum ahead of Bitcoin (BTC) in terms of long-term holdings, as Bitcoin hovered just below the 70% mark. This increase in the percentage of ETH held by long-term investors is seen by some as a testament to their belief in the cryptocurrency’s long-term potential.
This record comes at a time when many predict that Ethereum will soon outshine Bitcoin. Well-known crypto analyst Raoul Pal recently reiterated his prediction that 2024 could see a repeat of the 2021 cycle, where ETH outperformed BTC. In that year, ETH grew by 254% compared to Bitcoin’s 45%, after initially lagging behind. JPMorgan analysts also expressed a cautiously optimistic forecast, predicting that by 2024, ETH will outperform BTC and other digital assets in terms of market price performance.
This positive outlook for ETH is tied to the upcoming EIP-4844 upgrade, known as protodanksharding, which is set to launch in the first half of 2024. This upgrade is expected to significantly enhance Ethereum’s network performance by implementing a more efficient sharding method. The market price of ETH is currently priced at $2,300, showing a 4.3% increase over the past seven days and an 88.6% increase over the past year.
However, Ethereum co-founder Vitalik Buterin has recently raised eyebrows with his activity in his Ethereum wallet. He transferred 500 ETH, valued at over $1 million, to Coinbase, leading to speculation about him selling his crypto holdings. Buterin clarified that these transfers were for philanthropic purposes and not for personal gain. This follows a series of significant transfers made by Buterin in September, which also sparked speculation. Despite these developments, analysts believe that the recent impressive performance of altcoins and Layer 2 projects indicates an upcoming rally for ETH.
