The “HODL Waves” chart of Ethereum illustrates how the distribution of circulating supply has changed over time, highlighting shifts in investor behavior.
One concentration is that a significant proportion of Ethereum tokens held for one to three years, indicating that a large portion of tokens purchased between 2021 and 2022 are still being held for the long term. This proportion is relatively substantial compared to the total supply.
This trend indicates that many investors have faith in the future of Ethereum and prefer to hold onto their investments rather than sell them during market volatility. It also reinforces this pattern by showing that the price of ETH tokens with a holding period of less than six months has fallen.
On the other hand, Ethereum’s holding volume has been increasing for over seven years, reflecting the resilience of long-term holders across multiple market cycles.
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This is why altcoins outperform Bitcoin in this market cycle.
The consistency demonstrated by long-term investors indicates their unwavering confidence in the fundamental value and future potential of the second-largest cryptocurrency by market capitalization.
In conclusion, the HODL Waves chart provides valuable insights into the dynamics of the Ethereum market, indicating that an increasing number of investors continue to opt for a long-term holding strategy despite ever-changing market conditions.
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