In December, Ethereum (ETH) reached a significant milestone as the proportion of ETH held by long-term holders surged to 70%, marking a notable uptick since the beginning of the month. This landmark puts Ethereum ahead of Bitcoin (BTC) in the same category, as BTC hovered just below the 70% mark during the same period.
Analysts perceive this rise in ETH held by long-term investors as a clear sign of their unwavering belief in the cryptocurrency’s enduring potential. This record achievement arrives amidst growing predictions that Ethereum is poised to overshadow Bitcoin in the near future. Notably, renowned crypto analyst Raoul Pal recently reiterated his earlier forecast, suggesting that 2024 might witness a repeat of ETH’s outperformance against BTC, reminiscent of their 2021 cycle.
During 2021, ETH surpassed BTC’s growth, rallying by 254% compared to Bitcoin’s 45% increase after initially trailing behind. This positive sentiment aligns with JPMorgan analysts’ cautiously optimistic projection, anticipating Ethereum to outpace Bitcoin and other digital assets in market value performance by 2024. Their bullish outlook is tied to the anticipated EIP-4844 upgrade, popularly known as protodanksharding, scheduled for the first half of 2024. This upgrade promises to enhance Ethereum’s network efficiency significantly through a more streamlined sharding method.
Despite Ethereum’s current price lagging behind Bitcoin, analysts foresee an imminent ETH rally, fueled by the remarkable performance of altcoins and Layer 2 solutions. Presently valued at $2,300, Ethereum has observed a 4.3% increase over the past seven days and an impressive 88.6% surge over the last 12 months.
However, Ethereum co-founder Vitalik Buterin has drawn attention by transferring 500 ETH—worth over $1 million—to Coinbase, as noted by on-chain analysts. This follows a series of notable transfers made by Buterin in September, sparking speculation about potential selling of his crypto holdings. Buterin clarified that these transfers were primarily philanthropic, emphasizing that he hasn’t sold Ether for personal gain since 2018.
The recent activity in Buterin’s Ethereum wallet, combined with his earlier transfers and statements, has fueled discussions about his crypto holdings, with a focus on their intended use for charitable purposes.
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