Here is Ethereum’s long-term ROI opportunity that traders should be aware of.

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Ethereum has listed as the number one altcoin in traders’ portfolios, trading up to $3000. It has established itself as a HODLers’ altcoin with strong short- and long-term returns. Along the road to $3000, there have been many dips and purchasing opportunities, as well as benefit booking opportunities. This alt season has seen ETH rally alongside Bitcoin and other altcoins. However, some observers remain sceptical of ETH’s prospects.

The price of ETH, the crypto currency used to pay for the use of the Ethereum Virtual Machine (a massive computing network capable of processing decentralised data functions), has risen by 907 percent since the beginning of 2020 and by 85,587 percent since the altcoin’s inception in 2015.

This is based on data from the study Two Prime Digital Assets. The fact that ETH is being institutionalised at this pace may indicate that the institutional demand for ETH is saturated. Furthermore, foundational problems such as ETH are eternal and can be censored. It allows for transaction rollback, and the fact that rules can be modified anytime Devs determine and vote on it makes it unpredictable in the long run.

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In terms of metrics, Ethereum’s number of addresses HODLing more than 0.1 coins recently hit an all-time high of 4.7 million. However, one might contend that the rise in the number of non-zero addresses does not indicate the development of ETH, but rather its prominence. A greater number of non-zero addresses can also indicate an increase in traders and demand, as well as a lack of whale aggregation or major transactions on the ETH network.

If we look at the ROI over the last two months, we can see that the price has nearly doubled from $1400 to $2800, pushing ETH from long-term to short-term lucrative altcoins as a pullback is predicted. There will be market corrections in the near run, but there may also be stabilisation.

Why Ethereum HODLers may not see profits in the long-term

ETH Short-term ROI || Source: Messari

According to the above table, ETH’s ROI is approximately the same over a 90-day and a year cycle. It is almost 115 percent. What exactly does this mean?

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It does not display an increase in ROI for long-term HODLers, but it is lucrative for traders HODLing for less than 100 days. Analysts are sceptical of ETH’s long-term ROI prospects as opposed to top assets such as Bitcoin.

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