Ethereum (ETH) capital inflows pale in comparison to Bitcoin (BTC)

Over the ongoing cycle, BTC and ETH have seen the divergence in their respective performances widen.

According to Glassnode's findings, this can be attributed to the overall trend of slower capital turnover, especially compared to previous cycles and all-time highs.

Capital flows to Ethereum are weak

Leading up to Bitcoin’s peak established on March 14th, Glassnode observed a spike in speculative activity. The latest on-chain weekly report shows capital accumulation among short-term holders of BTC, with approximately $240 billion in wealth held in the coin moved within the past six months, nearing peak levels. I am.

The same cannot be said for Ethereum, which has so far failed to replicate this trend. Major altcoins have yet to even surpass their 2021 all-time highs. As a result, Bitcoin's short-term holder (STH) realized ceiling is at roughly the same level as the peak of the previous bull market, while Ethereum's STH realized ceiling is barely up from its lows, with new capital inflows being noticeably less active. It shows that it lacks.

This lack of new capital inflows reflects the poor performance of ETH compared to BTC. This may be partially due to the attention and accessibility brought by spot Bitcoin ETFs.

The market is still anticipating the SEC's decision on the approval of a series of Ethereum ETFs, expected by the end of May.

As a result, “experienced” Ether investors are “sitting around and waiting for the price to go up.”

“Analyzing capital flows and rotations between BTC and ETH, we find that Bitcoin accounts for the majority of inflows, likely driven in part by US spot ETFs. Short-term holdings Investors and speculative activity appear to be concentrated within Bitcoin, with spillover to Ethereum being significantly weaker so far.

Ethereum price performance so far

While ETH may have underperformed compared to BTC due to a lack of catalysts, the overall uptrend has been a relatively shallow correction so far, making it one of the most resilient in history, according to Glassnode analysis. It seems to be one of those things.

The altcoin has struggled to break above $3,000. It hit a multi-year high of nearly $4,000 earlier this year, but has been unable to sustain that rise and is now well below that.