{"id":7073,"date":"2022-09-12T05:37:40","date_gmt":"2022-09-12T05:37:40","guid":{"rendered":"http:\/\/www.cryptoheretostay.com\/?p=7073"},"modified":"2022-09-12T05:37:41","modified_gmt":"2022-09-12T05:37:41","slug":"as-the-merge-approaches-on-chain-data-suggests-eth-used-as-store-of-value","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=7073","title":{"rendered":"As the merge approaches, on-chain data suggests ETH used as store of value"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n   <\/p>\n<p>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.<\/p>\n<p>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.<\/p>\n<p>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.<\/p>\n<p>Ethereum: HODL Waves (Source: Glassnode)<\/p>\n<p>Given that Ethereum mined its first block in July 2015, coins that haven\u2019t 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.<\/p>\n<p>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.<\/p>\n<p>Bitcoin has an in-built inflation rate of 1.7%, whereas Ethereum could see deflation of 4%, almost 6% lower than Bitcoin. Yet, Ethereum has robust utility across its network, so a lack of available ETH due to investors holding could impact the network\u2019s performance.<\/p>\n<p>Inflation is a tool designed to encourage spending. If Ethereum becomes deflationary, there will be little incentive to transact on the network.<\/p>\n<p>Further, almost 32m ETH was sitting on exchanges in mid-2020. However, two years later, the amount of ETH dropped to just 20m. The number of long-term HODLers, inflation rates, and supply on exchanges are significant long-term trends required to understand supply\/demand dynamics<\/p>\n<p>Ethereum: Balance on Exchanges (ETH) (Source: Glassnode)<\/p>\n<h2>Get an Edge on the Crypto Market \ud83d\udc47<\/h2>\n<p>Become a member of CryptoSlate Edge and access our exclusive Discord community, more exclusive content and analysis.<\/p>\n<p>  <strong>On-chain analysis<\/strong><\/p>\n<p>  <strong>Price snapshots<\/strong><\/p>\n<p>  <strong>More context<\/strong><\/p>\n<p> Join now for $19\/month Explore all benefits<br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/research-as-the-merge-approaches-on-chain-data-suggests-eth-used-as-store-of-value\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7074,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-7073","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/7073","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7073"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/7073\/revisions"}],"predecessor-version":[{"id":7075,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/7073\/revisions\/7075"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/7074"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7073"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7073"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}