Ethereum, which is traded close to $ 3000, has been the # 1 altcoin in traders’ portfolios for a while. ETH has made its mark as a hodler altcoin with high short-term and long-term returns. The rise to $ 3000 saw many dips and buying opportunities along the way, and also offered profit booking opportunities. ETH has soared along with Bitcoin and altcoins this altcoin season. However, there are analysts who are unsure of ETH’s future.
The price of ETH, the digital asset used to pay for the use of the Ethereum Virtual Machine (a global network of computers capable of processing decentralized data functions), has increased 907% since the beginning of 2020. Since 2015, the rate of increase is 85.587%.
This is based on data from the Two Prime Digital Assets report. The fact that ETH is institutionalized at this rate may indicate that the corporate market of ETH is saturated. In addition, the main problems with ETH do not change. It supports rollbacks, and the ability to change rules when developers decide and vote makes this unpredictable in the long run.
As far as metrics are concerned, the number of Ethereum’s HODLing addresses above 0.1 tokens recently reached ATH with 4.7 million. However, it can be said that the increase in the number of non-zero addresses does not indicate the growth of ETH, but rather the popularity. A greater number of non-zero addresses could point to the rise of traders and demand, and the lack of whale backlog or large transactions in the ETH network.
If we consider the return on investment in the last two months, the price has almost doubled from $ 1400 to $ 2800, which is pushing ETH to long-term short-term profitable altcoins as a drawback is expected. In the short term, there may be corrections in the price, but there is also a recovery.
According to the table above, the ROI of ETH is almost the same for a 90-day period and a one-year period. Almost 115%. Well what does it mean?
It gains a value in ROI for long term HODLers, but in the short to medium term, HODLing is less profitable for less than 100 days. These statistics make analysts unsure of the long-term ROI potential of ETH compared to the most important assets like Bitcoin.