Data from Glassnode Alerts indicate a trend of dormancy for both Bitcoin (BTC) and Ethereum (ETH), as on-chain metrics reveal new milestones for the two leading cryptocurrencies. For Ethereum, the Amount of Supply last Active 5y-7y has reached a 9-month high, while Bitcoin’s Percent Supply Last Active 3+ Years is currently around 39.830%, hitting a new all-time high (ATH).

Ethereum’s Dormant Supply Hits 9-Month High

According to Glassnode, the ETH Amount of Supply last Active 5y-7y has just reached a 9-month high. This metric shows the amount of Ethereum that has remained inactive for the past five to seven years, suggesting that a significant portion of the total supply has not been moved or traded during this time.

In addition to this metric, Glassnode also reported that the Mean Block Size (7d MA) for Ethereum has reached a 1-month low. This indicates that the average size of Ethereum blocks has been decreasing, which could be a sign of reduced network usage and overall activity on the platform.

Bitcoin’s Percent Supply Last Active 3+ Years Reaches New ATH

Meanwhile, Bitcoin’s Percent Supply Last Active 3+ Years has reached a new all-time high of 39.830%. This metric represents the percentage of the total Bitcoin supply that has remained dormant for at least three years, suggesting that a large portion of BTC holders are opting for a long-term investment strategy and holding onto their coins.

The increasing dormancy in both Bitcoin and Ethereum’s on-chain metrics may be indicative of a shift in market sentiment, as more investors choose to hold their digital assets for more extended periods instead of actively trading them. This could potentially lead to increased price stability for both cryptocurrencies in the long run.

What Does the Dormancy Trend Mean for the Crypto Market?

The trend of dormancy in both Bitcoin and Ethereum’s on-chain metrics suggests that many investors are adopting a long-term investment approach, which could have various implications for the broader crypto market. For one, increased dormancy may contribute to reduced market volatility, as fewer digital assets are being actively traded.

Additionally, the increasing dormancy trend may be a sign of growing confidence in the long-term potential of cryptocurrencies, as more investors opt to hold onto their assets rather than sell or trade them frequently. This could potentially lead to increased adoption and integration of digital currencies in various industries and financial systems.

In conclusion, the recent on-chain metrics for Bitcoin and Ethereum highlight a trend of dormancy in the crypto market, with both cryptocurrencies showing significant portions of their respective supplies remaining inactive for extended periods. This trend may have various implications for the crypto market, including reduced volatility and increased long-term confidence in digital assets.