While Ethereum investors have been waiting for the market to panic, the wider market seems to be filling its pockets. It had fallen to $2,500 after it had been hit by market crashes and dips. However, these ‘diamond hands’ holders had remained unfazed given that data showed that they continued to accumulate ETH tokens all through the market dip.
Bitcoin Holders Get Loaded Up
Ethereum holders who are longer-term investors, in particular, tend to be more likely to increase their coins while the market falls. These holders were able to add coins continuously during the previous downtrend. These investors bought ETH in spite of Ethereum’s continued decline over the past three months.
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Data from IntoTheBlock indicated that over 4,000,000 ETH had been purchased by long-term digital asset holders. These holders had accumulated approximately $12 billion.
It is also noted in the report that this group of holders held their ETH tokens longer than a year. These investors had been accumulating more tokens with each dip and successfully pushed their total holdings up to an all-time high. These wallets still have the largest share of the supply, despite the fact that the total amount they hold has fallen in recent days. 59% total ETH supply is held by wallets which have been holding their tokens more than a decade.
This is What’s Driving It?
One of the most obvious reasons that have sparked renewed interest in Ethereum ownership has been the “Merge”. This significant upgrade will change how the Ethereum network operates and is scheduled to occur sometime during the year.
The network’s transition from proof-of-work to proof of stake will make it safer, more reliable, and more sustainable. It will also significantly reduce the energy required for mining operations on the network. This will dramatically reduce carbon emissions.
ETH price breaks above $3,400 | Source: ETHUSD on TradingView.com
Investors are lining up to wait for the expected rise in digital assets’ value as the Merge nears.
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Ethereum is now on an uptrend, which means investors who invested in tokens at the bottom of the downtrend are now making a profit. The investor mood towards the planned merger is becoming more positive.
Featured Image from EU Reporter. Chart by TradingView.com