Market sentiment indicates optimism towards Ethereum, as key indicators show positive trends
In the world of cryptocurrencies, the balance of power may be shifting. A recent analysis reveals that the share of long-term Ethereum holders has surpassed that of long-term Bitcoin holders, marking a significant change in the crypto landscape.
The chart provided by IntoTheBlock shows the percentage of long-term Bitcoin and Ethereum holders over the past year. The data reveals that the share of long-term Ethereum holders has increased from 59% in January 2024 to 75% by December 2024, while the share of long-term Bitcoin holders decreased from around 70% to 62% over the same period.
Several factors have contributed to this phenomenon. Ethereum's strong price performance over Bitcoin, its expanding ecosystem, and the introduction of staking opportunities have made Ethereum more attractive to long-term investors.
Ethereum's transition to a deflationary monetary structure and staking model allows holders to earn yields by locking up ETH, which encourages long-term holding. This contrasts with Bitcoin’s fixed supply and no native staking rewards, making ETH more appealing for income-focused holders and institutions.
Moreover, Bitcoin's dominance in the crypto market has fallen from 52% in early 2024 to below 48.3% by mid-2025, with Ethereum’s increasing market share reflecting growing institutional and retail investor interest. Ethereum’s expanding applications and upgrades have positioned it as a more versatile asset, attracting diversified portfolios and long-term holders.
On the other hand, data indicates a shift in Bitcoin long-term holder behavior from accumulation to distribution in 2024, as some holders began offloading positions during price strength at high levels. This trend suggests profit-taking and could result in fewer long-term Bitcoin holders if selling continues.
The slowdown in Ethereum's growth may have been influenced by the absence of staking in newly launched ETH ETFs, the Q4 frenzy around meme coins, and high transaction fees on Ethereum that may have contributed to fund flows into other cryptocurrencies like Solana.
Looking ahead, if Ethereum sustains its price momentum, ecosystem innovation, and staking rewards, the number of long-term ETH holders is likely to increase further, potentially narrowing or even surpassing Bitcoin’s long-term holder base. Conversely, Bitcoin long-term holders may consolidate as some sell into strength while new holders await clearer breakout signals beyond strong resistance levels.
The increasing competition for market dominance between Ethereum and Bitcoin is expected to continue, especially as institutional strategies diversify into multiple crypto assets, including ETH-based yield and DeFi opportunities. This dynamic is expected to persist as Ethereum strengthens its market position, while Bitcoin consolidates and seeks new upward momentum.
[1] CoinGecko [2] MN Trading [3] CryptoQuant [4] IntoTheBlock [5] Kaiko
- The surge in long-term Ethereum holders has outpaced that of long-term Bitcoin holders, according to data from IntoTheBlock, which may signify a shift in the crypto financing sector, particularly among institutional investors who find Ethereum's staking opportunities and expanding ecosystem more attractive.
- The decreasing share of long-term Bitcoin holders and the increasing share of Ethereum holders, as shown on platforms like CoinGecko and Kaiko, could signal a growing preference for technology-driven assets among investors, as Ethereum's versatility, deflationary monetary structure, and staking model contribute to its rising popularity.
