Ethereum (ETHUSD)

[ap17]

ETHEREUM HODL WAVES 🌊
With all of the Ethereum talk lately…

Why don’t we check in on ETH’s supply dynamics.

To do that we’ll be taking a look at the classic HODL Waves metric.

Each coloured band shows the percentage of ETH that last moved within that time period.

As the colours get cooler, the age bands get older (blue being the oldest, representing coins having last moved 7 - 10 years ago).

This metric can also be used for short-term holders, but we’ll just be focusing on long-term holders today.

onchain
Here’s the breakdown:

6m - 12m: 14.30%

1y - 2y: 15.20%

2y - 3y: 16.89%

3y - 5y: 14.77%

5y - 7y: 10.78%

7y - 10y: 8.54%

That means that ~80.48% of the Ethereum supply has NOT moved for over 6+ months.

That’s an insane amount of the supply not moving. (even more than Bitcoin’s, percentage wise)

That only leaves 19.52% of the supply in the hands of short-term holders.

However, it does make sense that Ethereum has a larger percentage of its supply laying dormant.

Remember, ETH HODLers are incentivised to lock up their holdings for staking.

An advantage that ETH has over BTC.

With the recent approval of the Ethereum ETFs, these supply dynamics are ridiculously good.

You know what we’re about to say…

It’s just simple economics:

Increasing demand + decreasing supply = rocket fuel 🚀