Ethereum is ending 2024 on a high note, with long-term holders increasing significantly compared to Bitcoin, which has seen a steady decline in its dedicated investor base. Confidence in Ether has grown throughout the year, fueled by regulatory shifts, technical advancements, and rising institutional interest.
Long-Term Holding Trends Shift
Data from IntoTheBlock reveals that the percentage of Ethereum holders classified as long-term — holding the asset for over a year — rose from 59% in January to 75.1% by December 30. In contrast, Bitcoin‘s long-term holder base dropped from 70% to 62.3% over the same period.
This trend highlights growing faith in Ethereum, especially as investors look ahead to 2025. Ether’s rise coincides with a surge in spot Ether ETF inflows, which doubled in December, reaching $2.1 billion in cumulative net inflows compared to $1 billion in November.
Meanwhile, Bitcoin faced headwinds despite hitting an all-time high of $106,000 earlier in the month. Technical analyst Ger Van Lagen noted that long-term Bitcoin holders cashed out amid the market euphoria, leading to a price drop to $93,000 by December 30. Still, Van Lagen remains optimistic about Bitcoin, predicting it could surpass $200,000 in the near future.
Ethereum Bright Prospects
Ethereum’s upward momentum is backed by several developments that have strengthened investor confidence. Analysts have highlighted regulatory changes, including increased oversight by the Commodity Futures Trading Commission (CFTC) and the addition of staking features to Ether ETFs, as key drivers.
The prospect of a Trump administration is also seen as a positive for Ethereum. Experts anticipate regulatory reforms, including an overhaul of the SEC, which could favor Ethereum’s ecosystem and reduce uncertainty for institutional investors.
As financial markets evolve, Ethereum’s long-term holder surge suggests it may be cementing its place as a trusted store of value alongside Bitcoin. With major developments on the horizon, Ethereum appears poised to maintain its lead as a top choice for investors in 2025.