Ethereum sees a rise in new users as long-term holders sit tight!

In recent developments, the Ethereum blockchain, also known for its native cryptocurrency, ether, is seeing a rising number of long-term holders. With new data from The Block indicating that one-year active supply is breaking down recent records, we can see that long-term investors remain committed. This, in turn, means that older Ethereum holders who wish to cash out of their investments may find it easier than it used to be.

More specifically, ether’s 30-day and 90-day active supply indicators are currently at historical lows, down more than 50% from peak levels. A 9% decrease in the amount of ether actively transacted in the previous year. 

However, the bitcoin market deviated from this trend, increasing its one-year active supply by almost 1% following a decline that resulted in a new record low near the end of the designated time. This rebound has significantly reduced the previously large ace supply differential between ether and bitcoin, the two largest cryptocurrencies by market capitalization.

Despite this trend, which involves the long-term Ethereum community in less activity, the Ethereum ecosystem has registered an explosion of new users, with interest in its latest developments seen to be burgeoning. March witnessed the onboarding of 3.66 million new crypto users last month, the most significant number the market has seen since the crash of the FTX exchange in late 2021.

In addition, the Ethereum network recently launched the Dencun update, a major upgrade made to its Layer 2 networks to reduce transaction costs by introducing “blobs.” According to a seven-day moving average, this upgrade has worked, and activity has been revitalized, as demonstrated by an increase in the number of active addresses on Ethereum. The growth indicates that more newcomers to the Ethereum community are actively involved in the platform’s development than established users.

The evolving landscape within the Ethereum community highlights a noteworthy shift. Long-term holders are showing renewed interest and participation in the ecosystem despite the fact that they may be hoarding ether tokens in anticipation of future value increases. This demonstrates Ethereum’s ever-increasing popularity as a leading blockchain platform and the correct balance, which combines the preservation and development of its user base with the evolution and upgrade of its technological capabilities.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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