The cryptocurrency landscape is witnessing a pivotal shift in investor behavior, with Ethereum (ETH) increasingly outperforming Bitcoin (BTC) in one critical metric: long-term holder concentration. Recent data from IntoTheBlock reveals that 74.7% of Ethereum addresses are now classified as long-term holders—those who have not moved their assets in over 155 days. In contrast, Bitcoin’s long-term holder share stands at just above 60%, marking a growing divergence between the two flagship digital assets.
This trend underscores a deepening confidence in Ethereum's long-term value proposition, driven by its evolving ecosystem, ongoing protocol upgrades, and expanding use cases in decentralized finance (DeFi), non-fungible tokens (NFTs), and real-world asset tokenization.
The Rise of Ethereum’s Committed Holders
Ethereum’s long-term holder percentage has seen a steady climb throughout the year, rising from approximately 59% at the beginning of 2025 to nearly 75% by year-end. This upward trajectory reflects strong conviction among ETH investors, many of whom appear unfazed by short-term price volatility.
👉 Discover how Ethereum's ecosystem is attracting long-term investors like never before.
In stark contrast, Bitcoin’s long-term holder ratio has declined over the same period—from close to 70% earlier in the year down to about 62%. While still significant, this drop suggests a softening in holding sentiment among BTC investors, possibly influenced by macroeconomic factors, regulatory uncertainty, or shifting market dynamics.
The growing gap between these two networks highlights a fundamental change in market psychology. Ethereum is increasingly perceived not just as a store of value, but as a foundational platform for innovation in Web3 and blockchain-based applications.
Market Dynamics Behind the Shift
Several factors contribute to Ethereum’s rising retention rate:
- Network Upgrades: The continued success of post-merge upgrades, including improvements in scalability and energy efficiency, has boosted investor confidence.
- EIP-4844 and Layer-2 Growth: Proto-danksharding has significantly reduced transaction costs on Layer-2 solutions, fueling adoption across DeFi and gaming platforms.
- Institutional Interest: Growing interest from traditional finance players in ETH-based financial products, including spot ETFs under review in major markets, adds further legitimacy.
Meanwhile, Bitcoin’s lower long-term holder retention may reflect profit-taking after recent rallies or concerns about its utility beyond digital gold. With BTC failing to sustain momentum past key resistance levels—such as the $108,000 mark—market sentiment has turned cautious.
Bitcoin’s Struggle with Momentum
Recent price action paints a challenging picture for Bitcoin. At one point this week, BTC dipped below $92,000**, before recovering slightly to trade above **$94,000. However, price recovery alone does not indicate strength.
CryptoQuant data shows that funding rates—a key gauge of derivative market sentiment—remain weak. For a sustained bull run, strong and rising funding rates are essential, signaling aggressive long positions and bullish leverage. Instead, funding rates spiked mid-rally but collapsed after Bitcoin failed to break through the $108,000 resistance.
👉 See how market sentiment shapes crypto price movements—and what it means for your strategy.
This collapse suggests that much of the buying pressure was speculative rather than fundamental. As leverage unwound, it triggered sell-offs and dampened overall confidence.
Ethereum’s Technical Outlook: A Bullish Channel Formation
Despite broader market uncertainty, Ethereum shows signs of structural strength. Analyst Ali Martinez has identified an ascending parallel channel pattern forming on ETH’s price chart—a technical formation often associated with sustained bullish momentum.
This pattern suggests that even if Ethereum experiences a pullback toward the $2,800 support zone**, it could find strong buying interest there before resuming its upward trajectory. Should momentum hold, the next major target could be **$6,000, representing substantial upside potential.
Such a move would be supported by both technical structure and on-chain fundamentals, including increasing smart contract activity, rising gas utilization, and growing staking participation.
Why Long-Term Holding Matters
A high concentration of long-term holders is more than just a statistic—it's a powerful indicator of network health and investor confidence. When users hold rather than trade, it reduces circulating supply, increases scarcity, and insulates the asset from short-term market shocks.
For Ethereum, this behavior aligns with its transition from a speculative asset to a core infrastructure layer for decentralized applications. Developers, institutions, and retail users alike are treating ETH as both collateral and currency within an expanding digital economy.
Bitcoin, while still dominant in brand recognition and market cap, faces increasing pressure to demonstrate continued relevance beyond its role as digital gold—especially as alternative narratives around utility-driven blockchains gain traction.
Frequently Asked Questions (FAQ)
Q: What defines a "long-term holder" in cryptocurrency?
A: Typically, a long-term holder is an address that hasn’t moved its coins in at least 155 days. This metric helps distinguish between active traders and committed investors.
Q: Why is Ethereum’s long-term holder percentage increasing?
A: Factors include confidence in upcoming upgrades, growth in DeFi and NFT ecosystems, rising staking yields, and institutional adoption trends favoring programmable blockchains.
Q: Does a declining long-term holder rate mean Bitcoin is failing?
A: Not necessarily. It may reflect profit-taking after rallies or shifting allocation strategies. However, sustained declines could signal weakening conviction compared to other assets like Ethereum.
Q: How do funding rates affect cryptocurrency prices?
A: High funding rates indicate aggressive long positions in futures markets, often preceding strong rallies. Low or collapsing rates suggest weak speculative interest and potential reversal risks.
Q: Can Ethereum really reach $6,000?
A: While no price prediction is guaranteed, technical patterns like ascending channels, combined with strong on-chain metrics and ecosystem growth, make such a target plausible under favorable market conditions.
Q: Should I hold Ethereum long-term?
A: Long-term holding depends on your risk tolerance and belief in Ethereum’s role in Web3. With strong developer activity, continuous innovation, and rising institutional interest, ETH remains one of the most compelling digital assets for strategic investment.
Conclusion
Ethereum’s surge in long-term holder adoption—to 74.7%—is more than a number; it’s a signal of shifting market priorities. Investors are increasingly placing their trust in platforms that offer utility, adaptability, and real-world integration. While Bitcoin remains a cornerstone of the crypto economy, Ethereum is demonstrating stronger resilience and forward momentum.
As we move deeper into 2025, the contrast between these two giants will likely continue shaping investment strategies across the industry. For those seeking growth aligned with technological progress, Ethereum’s trajectory offers compelling reasons to pay attention—and possibly act.
Core Keywords: Ethereum, Bitcoin, long-term holders, cryptocurrency investment, ETH price prediction, on-chain analysis, market sentiment, blockchain ecosystem