- Ethereum records more long-term holders than Bitcoin, according to on-chain data from IntoTheBlock.
- While there is a notable increase across the board, ETH outranks BTC when it comes to large holders.
- Metrics such as percentage coins in USD, time held, and number of addresses were considered.
- Experts attribute this margin to Ethereum’s DeFi dominance as the network offers more functionality besides being a crypto, unlike Bitcoin.
Ethereum (ETH) price has shown a significant correlation with Bitcoin (BTC) price, tracing almost similar price actions with momentum indicators also aligning. A closer look, however, reveals that ETH has outranked BTC on several metrics, particularly where large holders or whales are concerned.
On-chain data from IntoTheBlock shows a commendable rise in long-term holders over the last year, with Ethereum outperforming Bitcoin. Specifically, Ethereum boasts a stark 73.5 million long-term holders (those who have held the cryptocurrency for more than one year) vs Bitcoin’s 33.61 million.
When it comes to whales, ETH boasts 5,370 addresses holding between 1,000 to 10,000 ETH. BTC, on the other hand, only has 1,920 addresses with between 1,000 and 10,000 Bitcoin.
ETH assets by time held
The number of humpbacks (addresses holding more than 5000 ETH) is also very high: 106,000 Ethereum holders own between 10K-100K, compared to Bitcoin’s 103,670 holders.
108 addresses hold more than 100,000 ETH versus only four holding as many BTC.
ETH Addresses by holdings
In addition, six wallets hold over a million Ether.
BTC assets by time held
The percentage of Bitcoin and Ethereum holdings in USD also paints a similar picture in favor of ETH.
BTCassets by holdings
Possible reasons for Ethereum flippening Bitcoin
Experts attribute the disparity, which favors Ethereum, to the network’s decentralized finance (DeFi) space dominance. Specifically, the proof-of-stake (PoS) token has more functionality or use cases than Bitcoin, which is valued only as a digital currency.
Among the applications of the Ethereum network include:
- Hosting other cryptocurrencies and stablecoins.
- Creation and trading of non-fungible tokens (NFTs).
- Development of decentralized applications (DApps) in finance, web browsing, gaming, and advertising, among others.
- Providing access to financial services, including but not limited to crypto-lending, yield farming, and initial coin offerings (ICOs).
- Creation and maintenance of digital identities for individuals, companies, and Internet of Things (IoT) devices.
The share of ETH locked in the DeFi landscape is also vast, recording up to $22.31 billion, relative to Bitcoin’s $162.6 million locked within the same domain. This explains why Ethereum has more long-term holders.
Bitcoin price is up approximately 31% year-to-date, while Ethereum price is up only 6.8% over the same timeframe. Needless to say, the variation shows that dynamics in the cryptocurrency market are not limited to valuation alone. Despite Bitcoin being the leading cryptocurrency by market capitalization, Ethereum has managed to attract more large holders.
What is Ethereum?
Ethereum is a decentralized open-source blockchain with smart contracts functionality. Serving as the basal network for the Ether (ETH) cryptocurrency, it is the second largest crypto and largest altcoin by market capitalization. The Ethereum network is tailored for scalability, programmability, security, and decentralization, attributes that make it popular among developers.
What blockchain technology does Ethereum use?
Ethereum uses decentralized blockchain technology, where developers can build and deploy applications that are independent of the central authority. To make this easier, the network has a programming language in place, which helps users create self-executing smart contracts. A smart contract is basically a code that can be verified and allows inter-user transactions.
What is staking?
Staking is a process where investors grow their portfolios by locking their assets for a specified duration instead of selling them. It is used by most blockchains, especially the ones that employ Proof-of-Stake (PoS) mechanism, with users earning rewards as an incentive for committing their tokens. For most long-term cryptocurrency holders, staking is a strategy to make passive income from your assets, putting them to work in exchange for reward generation.
Why did Ethereum shift from Proof-of-Work to Proof-of-Stake?
Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) mechanism in an event christened “The Merge.” The transformation came as the network wanted to achieve more security, cut down on energy consumption by 99.95%, and execute new scaling solutions with a possible threshold of 100,000 transactions per second. With PoS, there are less entry barriers for miners considering the reduced energy demands.
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