Investors lengthen Ethereum retention periods, driving $157 million in inflows
Ethereum holders show long-term commitment with 40% increase in coin holding time
Ethereum's new wave of momentum is garnering significant interest, both in its price and its appeal to different types of investors.
A recent sum of $157 million flowed into Ethereum-backed investment products, the highest level since Ethereum ETFs debuted earlier this year. This surge, driven by investor interest in traditional, regulated investment products, has pushed the total annual inflows into Ethereum ETFs to an impressive $915 million.
Ethereum holders signal long-term confidence
Some of the factors driving this increased interest lies in the changing behavior of Ethereum holders. Recent data shows that Ethereum’s average coin holding time jumped 40% in just seven days. In other words, more holders are keeping their Ethereum for longer exuding confidence in the coin's long-term value. When holders choose not to sell, fewer coins are available in the market, which can reduce volatility and create a foundation for potential price stability.
Another notable shift is seen among Ethereum’s short-term holders. Over the past month, these investors, who typically held assets for less than 30 days, have increased their average holding period by 9%. This trend reduces selling pressure in the market since a sizable portion of Ethereum’s supply remains in stable hands rather than being sold.
The rising appeal for this alpha altcoin may stem from potential crypto-friendly policy shifts in the United States. As anticipation of regulatory developments grows, investors see Ethereum as a promising alternative to Bitcoin, given its robust role in decentralized finance (DeFi) and blockchain applications.
This positive sentiment is evident in Ethereum’s price movement. On Monday, Ethereum jumped by 8.5%, breaking past the key $3,300 level, a level that is now acting as near-term support for Ethereum. The price surge marked Ethereum's seventh consecutive day in the green. Although Ethereum has had a slight pullback and is now trading well near $3,300, the combination of increased holding times, institutional inflows, and price resilience could define Ethereum’s journey into 2024.
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