The “HODL Waves” chart of Ethereum illustrates how the distribution of circulating supply has changed over time, highlighting shifts in investment behavior.
There is a concentration of Ethereum tokens held for one to three years, indicating that a significant portion of tokens purchased between 2021 and 2022 are still being held long-term. These proportions are quite substantial relative to the total supply.
This trend suggests that many investors believe in the future of Ethereum and prefer to retain their investments rather than selling them during market fluctuations. It also reinforces this pattern that the price of ETH tokens held for less than six months has declined.
On the other hand, Ethereum holdings have been increasing for over seven years, reflecting the survival of stable long-term holders across multiple market cycles.
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The consistency demonstrated by long-term investors indicates their unwavering confidence in the fundamental value and future potential of the second-largest cryptocurrency by market capitalization.
In conclusion, the HODL Waves chart provides valuable insights into the dynamics of the Ethereum market, indicating that an increasing number of investors continue to choose a long-term holding strategy amidst changing market conditions.
