Ethereum has, without any doubt, emerged to be the most profitable cryptocurrency in circulation now. It is viewed as a viable asset for the long term.
The number of Ethereum long-term holders has reached an all-time high now. This trend is recorded on the Hold On for Dear Life (HODL) charts of Ethereum.
As per the HODL chart, long-term holdings for 1-2 year and 2-3 year periods are high. A majority of the holders who bought the ETH tokens in 2021-2022 are still holding the tokens in spite of the price changes that occurred during this period.
This long-term holding trend is cemented by the fact that there is an increase in the number of holders for 7 years and above, and the number of holders for a short-term period such as less than 6 months is significantly reduced. These statistics show a promising trend that points out the long-term prospects of Ethereum.
Long-term holding of a crypto coin by a large majority of people without selling the token shows the investors’ trust in the token. The HODL list is a testimonial to the future of Ethereum.
What Is Ethereum?
Ethereum is a blockchain-enabled decentralized platform where investors can buy, earn, and stake ETH, its native coin. It is an easy-to-use technology platform that is highly safe to trust your digital assets with.
The proof-of-stake consensus mechanism that Ethereum uses to secure its platform provides validation for its transactions.
Ether, the official currency of the Ethereum platform, has emerged as the second most valued cryptocurrency after Bitcoin.
The price of an ETH token today is $3,507.17. The market capitalization of ETH is $428,789,457,322. These numbers show that the Return on Investment (ROI) of ETH has increased at a high rate since its launch.
What makes Ethereum a Popular Investment Option?
Ethereum platform is powered by blockchain technology that eases the defiance transactions on the platform.
The efficiency and low cost of using blockchain technology, combined with the security that the platform offers, make Ethereum a popular investment option.
Ethereum has the following advantages that make it a popular utility coin.
Ethereum is a popular decentralized finance platform. Unlike the traditional financial system, Ethereum does not have to work under a centralized authority.
Therefore the operations of the platform are transparent and immutable. All the transactions conducted on the platform are recorded and are non-reversible.
Ethereum is a reliable platform where users can mint and trade non-fungible tokens (NFTs) and other digital collectibles to represent their real-world earnings in the online world. The NFT form of the digital assets makes the transfer of these assets easy.
Ethereum is represented by smart contracts that are audited from time to time. Smart contracts are an easy means to represent and agree with the terms and conditions before finalizing the purchase decisions.
For trading on the Ethereum platform, you are required to give your identity details. These details are safely stored on the platform and are prevented from any identity theft or unauthorized access.
Ethereum users have Self-Sovereign Identity (SSI), in that they are the sole authority when it comes to matters such as sharing their identity. The platform cannot use your details for their benefit.
Another major use case of Ethereum is its integration into the gaming industry. Gamers can play-to-earn on different gaming platforms such as Axie Infinity, The Sandbox, Gods Unchained, Decentraland, etc.
The blockchain-powered Ethereum also has its uses in healthcare data management. The security that blockchain technology provides ensures that the data is kept confidential and is not tampered with.
The interoperability of the platform ensures that healthcare can be stored and transferred to different systems.
Ethereum is an efficient method by which cross-border payments and remittances are made possible. Such transactions can be made with very low cost and high speed when compared with traditional money transfer systems.
Final Thoughts
The unique use cases of Ethereum mentioned in this article make Ethereum a personal favorite for any cryptocurrency enthusiast.
Since its inception in 2014, Ethereum has gone through many low periods, but the reason behind its emergence as a major player in the crypto world is the trust vested in it by its investors.
