- Ethereum has seen low capital inflows since January compared to Bitcoin.
- Long-term ETH holders continue to wait for a new all-time high.
Leading altcoin Ethereum [ETH] has underperformed bitcoin [BTC] since January, Glassnode found in a new report.
According to the on-chain data provider, while BTC, helped in part by US spot exchange-traded funds (ETFs), has seen significant capital inflows since the beginning of the year, ETH has seen a decline in Comercial activity.
ETH remains in the shadow of BTC
Following the approval of Bitcoin Spot ETFs on January 10, Glassnode data shows a significant divergence in net unrealized gains/losses (NUPL) between BTC and ETH.
YoIn its report, the on-chain analytics firm noted that this suggests that BTC investors have captured a greater proportion of profits compared to their ETH counterparts since then.
The NUPL metric determines whether holders of an asset are experiencing unrealized gains or losses. Compares the average purchase price of all tokens held by investors with the current market price.
If the market price is higher, there is a net unrealized gain, while if it is lower, there is a net unrealized loss.
According to Glassnode, a significant threshold for NUPL is when the value exceeds 0.5. This is because it indicates that the unrealized profit of an asset is greater than 50% of its total market capitalization.
Glassnode said:
“Amid the hype and market rally surrounding (the) approval of Bitcoin spot ETFs, Bitcoin holders’ unrealized gains expanded considerably faster than those of Ethereum investors. As a result, Bitcoin’s NUPL metric crossed 0.5 and entered the euphoria phase three months earlier than the equivalent Ethereum metric.”
Additionally, ETH has yet to see a strong influx of new capital like BTC has since spot ETFs became tradable in the US.
Glassnode evaluated the realized limit of short-term holders for both coins and found that that of ETH remains low.
This suggests reduced activity from short-term investors in the currency, whose actions are known to significantly influence the price performance of an asset.
The report further said,
“In many ways, this lack of new capital inflows is a reflection of the poor performance of ETH relative to BTC. This is likely due in part to the attention and access that spot Bitcoin ETFs are generating.”
On why this might be happening, Glassnode added:
“The market is still waiting for the SEC decision for the approval of a set of ETH ETFs which is expected by the end of May.”
Is your wallet green? Check the ETH Profit Calculator
Due to the difference in coin performance, long-term holders (LTH) of BTC and ETH have adopted different strategies.
While BTC LTHs have abandoned some of their holdings to post gains following the currency’s rally to a new all-time high, ETH LTHs:
“It looks like we are still waiting for better profit opportunities.”
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This is an automatic translation of our English version.
