A report by blockchain analytics firm Glassnode explained the DeFi sector, as well as several long-term ETH holders, are the strong towers supporting the price of ETH from falling below $1,700. The report also stated that long-term holders are not affected by the ETH crash, while stating that many opportunities in the DeFi space are still available to investors.
According to the Glassnode report, investors that hold their ETH up to 155 days or more are the long-term holders. Glassnode said that this set of people still realize gains from their holdings even though ETH has reduced significantly from its record high of $4,300. At the time of writing, ETH is up 0.36% to $2,015.
In addition, the analytics firm referred to its STH-NUPL (short-term holders’ net unrealized profits-losses) indicator, which dropped to less than zero. This shows that inventors who lost are more likely to liquidate their ETH.
Furthermore, Glassnode said that LTH-NUPL also went flat while ETH was correcting. This signifies that “most long-term holders remain profitable.”
The firm noted:
“After almost hitting 46% off the market cap in unrealized gain, short-term holders are now holding an aggregate paper loss of -25% of the market cap. Conversely, long-term holders remain firmly in profit, holding paper gains equivalent to around 80% of the market cap.”
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