Ethereum (ETH) Capital Inflows Pale Compared to Bitcoin (BTC)

During the current cycle, btc and eth have witnessed increasing divergence in their respective performances.

According to Glassnode's findings, this can be attributed to an overall weaker capital turnover trend, particularly compared to previous cycles and record advances.

ethereum receives weak capital flows

Ahead of bitcoin's spike set on March 14, Glassnode observed an increase in speculative activity. According to its latest weekly on-chain report, capital accumulation was seen among short-term btc holders, with approximately $240 billion in coin wealth moved over the past six months approaching peak levels.

The same cannot be said for ethereum, which has so far failed to replicate this trend. The leading altcoin has not even surpassed its all-time high level of 2021 yet. As such, bitcoin's short-term holder (STH) realized limit is almost at the same level as the peak of the last bull run, while that ethereum's STH realized limit has barely risen from its lows, indicating a notably lackluster influx of new capital.

This dearth of new capital inflows reflects the poor performance of eth compared to btc. This could be due in part to the attention and accessibility that spot bitcoin ETFs are generating.

The market is still anticipating the SEC's decision regarding the approval of a set of ethereum ETFs, which is expected at the end of May.

As a result, “seasoned” Ether investors are “sitting back and patiently waiting for higher prices.”

“When we break down the capital flows and rotation between btc and eth, we can see that bitcoin has received the most inflows, likely driven in part by US spot ETFs. Short-term holders and activity Speculative speculation appears to be concentrated in bitcoin, with a notably weak spillover effect on ethereum so far.”

ethereum price performance so far

While eth may have underperformed btc due to the lack of a catalyst, Glassnode analysis suggests that the overall uptrend appears to be one of the most resilient in history, with relatively shallow corrections so far.

The altcoin has been struggling to break above $3,000. It hit a multi-year high of nearly $4,000 earlier this year, but has failed to maintain its trend and is now poised to fall sharply.

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