Research: As the merge approaches, on-chain data suggests ETH usShare
Xeggex
According to on-chain data, as the merge approaches, the dominant behavior across the Ethereum network is to HODL. Coins held by Ethereum investors are maturing to showcase a higher number of HODLers unwilling to sell.
Within the Ethereum ecosystem, just under 60% of investors have held for more than one year, compared with Bitcoin, which has 80% of HODLers holding for the same period of time.
However, we are now seeing 7-year holders (dark blue) of Ethereum start to increase. From July 28, the first 7-year holders began to show and now hold over 2% of the supply.
Ethereum: HODL Waves (Source: Glassnode)
Ethereum: HODL Waves (Source: Glassnode)
Given that Ethereum mined its first block in July 2015, coins that haven’t moved in 7-years are likely genesis coins that have never moved. As time goes on, it is expected that the 7-year HODLers will continue to grow as HODLers who entered the Ethereum ecosystem during the 2017 bull run start to emerge.
Unlike Bitcoin, Ethereum is not often referred to as a store of value. However, on-chain data suggests that 2% of Ethereum holders believe it could be. Depending on the activity of the network, Ethereum may also be deflationary after The Merge, which adds credence to this theory
