According to data from The Block, both Bitcoin (BTC) and Ethereum (ETH) have reached historic lows in active supply over the past year, indicating a strong trend toward long-term holding.
Key Findings:
- Bitcoin: Only 30.12% of BTC supply moved in the past year (transferred or traded), down from its peak of nearly 59% between March 2017 and 2018.
- Ethereum: Just 39.15% of ETH supply changed hands in the last year, compared to over 86% during July 2016–2017.
Historical Trends:
- BTC’s 3-year active supply dropped to 58.58% (from ~73% in late 2019).
- 5-year active supply fell to 70.13% (from a high of 83%).
- Despite inactive supply hitting record highs, network transaction volumes remain near peak levels.
Context:
This decline coincides with Bitcoin’s upcoming block reward halving (expected April 2025), which historically influences holder behavior. The data suggests growing confidence in BTC and ETH as long-term stores of value.
👉 Learn how halving events impact crypto markets
FAQ Section
Q: Why does active supply matter?
A: Lower active supply signals reduced selling pressure, often preceding price rallies as holders wait for higher valuations.
Q: How does ETH’s active supply compare to BTC’s?
A: ETH’s turnover rate remains higher than BTC’s, reflecting its dual role as both a transactional asset and a platform fuel.
Q: Could inactive supply suddenly become active?
A: Yes—events like macroeconomic shocks or profit-taking during bull markets can trigger movements in dormant coins.
Data sourced from The Block. For deeper analysis, explore our breakdown of 👉 crypto market cycles.
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