Ethereum holders have been filling up their bags while the broader market had panicked through the dip it seems. The digital asset which had suffered from crashes and dips that had hit the market had seen its value fall as low as $2,500. However, these ‘diamond hands’ holders had remained unfazed given that data showed that they continued to accumulate ETH tokens all through the market dip.
Ethereum Holders Load Up
Ethereum holders, especially those who have held for longer, are more likely to add coins to their holdings while the market is in a downtrend. This was the case during the last downtrend given that these holders had continuously added to their bags this time around. In the more than three months that Ethereum saw its value continue to decline, these investors just continued to purchase ETH.
Related Reading | Research Explains Bitcoin Mining Could Be Helpful For US Energy Independence
Data from IntoTheBlock showed that long-term holders of the digital asset had purchased more than 4 million ETH during this time. The whole lot came out to a total of about $12 billion that these holders had picked up.
In the report, it is noted that these were holders that had previously held their ETH tokens for more than a year. With each dip, these investors had accumulated more tokens, successfully pushing their collective holdings to a new yearly high. Although the amount held by these wallets has dropped in the past few days, they still hold the majority of the supply. A total of 59% of all ETH supply are held by wallets that have had their tokens for more than a year.
What Is Driving This?
One of the most obvious reasons that have sparked renewed interest in Ethereum ownership has been the “Merge”. This important upgrade is expected to take place sometime this year and will completely change the way the Ethereum network currently operates.
Moving from proof of work to proof of stake, the network will not only become safer and more scalable, but it will significantly cut down the amount of energy that is required to carry out mining activities on the network. This will drastically reduce the carbon footprint of the network.
ETH price breaks above $3,400 | Source: ETHUSD on TradingView.com
As the Merge draws near, more investors are filling up their bags in wait for what is expected to be an inevitable uptick in the value of the digital asset.
Related Reading | Bitcoin Helps Market Hover Past $2 Trillion As BTC Nears $48,000
Ethereum has now been on an uptrend since this week, meaning the investors who purchased tokens during the downtrend are now in profit. Investor sentiment towards the upcoming merge has grown increasingly positive.
Featured image from EU Reporter, chart from TradingView.com