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Ethereum Hodlers Tend to Hang On to Their Coins – Find Out Why

Ethereum Hodlers Tend to Hang On to Their Coins - Find Out Why
Ethereum Hodlers Tend to Hang On to Their Coins - Find Out Why

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A recent survey has looked into the spending behavior of Ethereum holders after the Ethereum Merge that happened on September 15, 2022. The survey showed that 31.8% of all the Ethereum holders did not make monthly transactions and only held the coin as an investment.

Ethereum holders tend to hold on to their coins

The Ethereum merge happened in mid-September, marking one of the most important events in crypto history. The upgrade saw Ethereum switch from a proof-of-work to a proof-of-stake consensus, which reduced the network’s energy consumption by over 99%.

The survey by BonusInsider analyzed the effects of the Ethereum Merge on the behavior of ETH holders. The number of daily transactions in Ethereum dropped by 9% from September 15 to October 31.

The survey involved 1,225 Ethereum investors, with the majority saying they did not trade or use their cryptocurrencies often. 72.9% of these investors said they send ten or fewer transactions monthly.

The respondents who made the most monthly transactions were less than 10% of those surveyed. Around 30% of the respondents also said they did not send any transactions.

The survey also looked into how Ethereum holders spent their coins. Despite the volatility this year, traders still hold on to ETH as an investment. 31.8% of the respondents said they were holding Ethereum as an investment and hoped to derive profits from their holdings after a given time.

On the other hand, 26.9% of the respondents said that they used ETH to speculate on the markets and actively traded other cryptocurrencies using ETH. 18.2% of the respondents said they used ETH to buy products through eCommerce platforms. 7.8% of those surveyed also said they used Ethereum to buy non-fungible tokens (NFTs).

The metaverse is also attracting Ethereum users, with 6.4% saying they used ETH for play-to-earn games. 5.3% of the users said they used Ethereum to conduct online gambling and betting, while 3.6% of users admitted using ETH to buy items within the metaverse.

The growing usage of ETH tokens across the web 3.0 & crypto space shows growing utility for the second-largest cryptocurrency by market capitalization. Despite the declining prices, it shows that Ether is still attracting investments.

Ethereum drops 20% in one week

While the survey by BonusInsider shows that Ethereum investors are still holding on to the token, the recent events in the crypto space are increasing the selling pressure. ETH is down 20% over the last week. In the past 24 hours, ETH has dropped by 10%, trading at $1,187 at the time of writing.

The entire cryptocurrency market is trading in the red today, with the total market cap dropping below $900 billion. The bearish outlook across the market comes amid the collapse of the FTX exchange, which has since halted withdrawals amid insolvency. The uncertainty surrounding the failure of one of the largest cryptocurrency exchanges is causing notable price dips.

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