Ethereum's Long-Term Holders Hold Firm Amidst SEC Probe, Data Reveals

Are Ethereum's Long-Term Holders Undeterred by SEC Scrutiny?

Amidst the Securities and Exchange Commission's (SEC) probe into the Ethereum Foundation, long-term holders remain steadfast in their conviction, according to data from IntoTheBlock. These investors, who have held ETH for over a year, have remained unmoved, with the amount of ETH they hold reaching record highs of over 98 million.

Could Ethereum's Upside Potential Remain Intact?

IntoTheBlock's Head of Research, Lucas Outumoro, attributes the resilience of long-term holders to their belief that the bull market for ETH has not yet reached its peak. "Based on previous market cycles, it appears that hodlers still believe ETH has room to continue appreciating," he said.

Is the SEC's Investigation Shaking On-Chain Activity?

Despite the SEC's probe, on-chain volumes for ETH have soared, reaching their highest level since May 2022 at approximately $12.27 billion this week. Layer 2 chains, such as Base, Optimism, and Arbitrum, account for the majority of these transactions, eclipsing those on the Ethereum mainnet.

Is Layer 2 Dominance Here to Stay?

Outumoro believes that Layer 2's dominance will continue, especially after the recent Dencun upgrade, which has significantly reduced gas fees on these chains. He asserts that the Ethereum ecosystem will continue to thrive despite recent concerns.

Unraveling the SEC's Probe

The details of the SEC's investigation into the Ethereum Foundation remain murky. Some analysts contend that the probe does not necessarily preclude the approval of Ethereum ETFs.

BlackRock's Ethereum Foray

Despite the regulatory uncertainty, BlackRock recently launched a tokenized fund on Ethereum, signaling the growing acceptance of the platform by traditional financial institutions.

Implications for the Crypto Market

The recent Ethereum data suggests that the crypto market is becoming more resilient to regulatory scrutiny. It also supports the view that Ethereum's growth potential remains intact.

Additional Insights

For further context on the SEC's probe, refer to "SEC Reignites Ethereum Debate Yet Again: Security or Not?"

For an exploration of Polygon's efforts to simplify EVM DApp development, see "Polygon (MATIC) Labs To Scale DApp Development With New Tool."