Ethereum fell by more than 10% from last week at one point, the biggest drop among the top 10. Lucas Outumuro, head of research at IntoTheBlock, says that despite all the problems surrounding the leading altcoin, long-term investors continue to buy.
Long-term investors double ETH according to analytics firm IntoTheBlock
Despite all the problems in the market, a leading crypto analysis firm claims that long-term investors are buying Ethereum (ETH) is doing. According to Lucas Outumuro, head of research at IntoTheBlock, more than half of all Ethereum in circulation now belongs to addresses that have held ETH for more than a year. Outumuro highlights in a recent Medium post:
Addresses that have held ETH for over a year (“hodlers”) collected almost half of all Ethereum in circulation. Long-term investor balances have changed in the opposite direction of price action. Hodlers’ balances had been falling since September 2021, but continued to accumulate in January 2022. After every major drop since then, hodlers’ balance has increased, surpassing 50% of the total circulating supply for the first time since 2020.
Altcoin investor stays on Ethereum for the long term
Outumuro’s detailed explanation is as follows:
Despite the gloomy short-term outlook Despite this, long-term players continue to bet big. In a related thread, a16z announced the creation of a $4.5 billion crypto fund, the largest in market history. These investments often have a time horizon of decades rather than weeks. Ultimately, it will take time for crypto’s purpose to be realized, and long-term market players will remain confident despite short-term uncertainties.
According to the expert, Ethereum had a large currency inflow last week, which may be a pessimistic indicator.
NFTs are bleeding
Lucas Outumuro, who also took a look at the NFT market as well as Ethereum analysis, said, “Although NFTs managed to gain value in the first quarter of 2021 unlike other assets, they have seen significant gains in the past month. He says they are underperforming.
Outumuro highlights the following about the NFT market:
- Buying a BAYC NFT at floor price four weeks ago with a loss of about a quarter million dollars would result.
- This coincides with the drop in the price of Ether, the main currency in which NFTs are traded.
- However, most NFT collections lost more than half their value, while ETH fell “only” 30% in May.
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