Ethereum (ETH) Holders Find Themselves in Profit as Price Surpasses $2,000
Date: 2023-12-16 Author: Dima Zakharov Categories: BLOCKCHAIN
Ethereum (ETH), the largest and most sought-after first-layer blockchain infrastructure among decentralized finance (DeFi) projects, has taken the cryptocurrency world by storm. Its native token, ETH, stands as the second-largest cryptocurrency by market capitalization.
Over the past year, Ethereum's price has skyrocketed by 85%, currently hovering around the $2,250 mark. This meteoric rise has left a whopping 76% of ETH holders in a "profitable" status, applicable to both short-term and long-term investors.
However, 23% of Ethereum wallets find themselves in a losing position, while 1% of holders acquired ETH at current prices, breaking even. Interestingly, 21% of Ethereum holders have maintained their positions for 1 to 12 months, while 3% recently joined the ETH community.
The data on Ethereum holders. Source: IntoTheBlock
The increasing number of Ethereum holders in the green raises the likelihood of selling pressure, as they may wish to realize their yet-unrealized gains. It's worth noting that only 46% of tokens are concentrated in addresses holding at least 0.1% of the total supply. A lower concentration of crypto whales and institutional investors reduces the risk of massive coordinated sell-offs.
Furthermore, cryptocurrency traders believe that ETH's price will continue to rise in the future, supported by the ongoing development of the DeFi ecosystem on Ethereum. With high demand and a rising price, investors are in no hurry to part with their assets.
In any case, the volatile cryptocurrency market often defies conventional logic, delivering surprises in both price hikes and disappointments in sudden declines.
