Ethereum Activity Shifts: New Users Surge, Long-Term Holders Less Active

• Long-term Ethereum holders are showing unprecedented inactivity, suggesting a strong ‘HODL’ sentiment within the community.
• Despite this, Ethereum is attracting a record influx of new users, potentially fueled by the Base Layer 2 solution and Dencun upgrade.
• Ethereum’s active supply dynamics differ from Bitcoin, which is seeing a resurgence in activity among long-term holders.

Discover why Ethereum’s user base is transforming, with a decline in activity among long-term holders coinciding with a spike in new addresses. Explore the potential factors driving this shift.

Long-Term Ethereum Holders Opt for Inactivity

Data reveals a significant decline in activity among long-term Ethereum (ETH) holders. Key metrics, including the one-year active supply, have hit historic lows, indicating a widespread trend of holding rather than transacting.

Ethereum vs. Bitcoin: Diverging Trends

Unlike Ethereum, Bitcoin (BTC) has witnessed a revival in activity among long-term holders. After an initial dip, Bitcoin’s one-year active supply has steadily recovered. This contrast highlights the unique dynamics currently at play within each cryptocurrency’s network.

New Users Drive Ethereum Network Activity

Despite the inactivity among long-term holders, the Ethereum network is experiencing an extraordinary influx of new addresses. This surge, possibly driven by the launch of Base and the Dencun upgrade (with its focus on lowering Layer 2 costs), is propelling overall network activity.

Conclusion

Ethereum’s ecosystem is undergoing a fascinating transformation. The decline in activity among long-term holders suggests confidence in ETH’s future, while the surge in new users signals growing adoption and potential network expansion. It remains to be seen how these trends will shape Ethereum’s long-term trajectory.