Ethereum Holders Are More Willing Than Bitcoin Investors to Part With Coins: Glassnode

Bitcoin the holders are still the real investors “hands of diamonds” compared to ethereum buyers, according to a new report, with the latest coins being moved and spent much more than the original called digital gold.

Blockchain data firm Glassnode said in a new report, citing the collected data at first this week crypto crash– since BTC moves less frequently than ETH, they behave more like a “digital savings asset”.

ETH moves much further as it functions as “digital oil”, which is both stored and actively used as network fuel and collateral.

“Bitcoin behaves like the digital savings asset it was designed to be, in that coins are widely accumulated, turnover is low, and recent behavior shows that more supply is migrating into long-term investments instead of sitting on exchanges,” the report said.

“Ethereum’s behavior also reflects the inherent properties of a high-transaction smart contract platform,” he added, “with a large base anchored by native staking, with the addition of recent market forces that add an investor component through ETFs.”

The report goes on to note why: the use of Ethereum in smart contracts, which contain the code that powers a wide range of decentralized applications, DeFi platforms and tokenized assets.

As Glassnode notes, “Long-term holders of ETH are mobilizing their old coins at a rate that is 3x faster than long-term holders of BTC, signaling that long-term holders of ETH are more willing to part with their coins, indicating utility-driven behavior.”

Ethereum powers crypto applications, ranging from stablecoins to decentralized financial exchanges. To make transactions that send digital money or to exchange tokens on a decentralized crypto exchange, users need to pay gas fees in ETH.

It is because of the use cases of the Ethereum network that, despite the approval of exchange-traded funds that are now traded on traditional exchanges, ETH still works less as a store of value asset compared to BTC – and that the coins are less dormant.

However, ETH may still have store-of-value use cases, Glassnode said, explaining that “one out of every four ETH is locked into native staking and ETFs.”

The price of Ethereum recently it was at almost $3,208, down 4.5% in the past week. The coin has been slow to reach an all-time high, but it finally did in August, breaking a nearly four-year high. It has traded well below that level — $4,946 — in recent weeks.

Bitcoin has been trading recently to $95,992, down nearly 6% over the past seven days. The highest of the coin is $126,088, touched in October.