Bitcoin Dominance: BTC’s MVRV Outpaces ETH’s For Record 812 Days

On-chain data shows the Bitcoin Market Value to Realized Value (MVRV) Ratio is currently on a record streak against the metric for Ethereum.

In its latest weekly report, the on-chain analytics firm Glassnode has discussed about the divergence forming between Bitcoin and Ethereum. First, below is a chart that shows how the two cryptocurrencies have compared in terms of the Realized Cap growth since the start of the bull cycle.

The “Realized Cap” here refers to an indicator that measures the total amount of capital that the investors of a given asset as a whole have invested into it. Changes in this metric, therefore, reflect the amount of capital going in/out of the cryptocurrency.

From the graph, it’s visible that Bitcoin has observed a massive increase of $468 billion in the Realized Cap since the bear market bottom back in November 2022. In this same window, Ethereum has seen inflows amounting to only $61 billion.

As the analytics firm explains,

This disparity in capital inflows between the two assets partly underscores why these assets have experienced diverging performance since 2023. Ethereum has experienced a relatively smaller inflow of demand and fresh capital this cycle, which has resulted in weaker price appreciation and a lack of a fresh ATH, despite Bitcoin prices reaching over $100k in December.

Divergence between the assets has also formed in another metric: the MVRV Ratio. This indicator keeps track of the ratio between the Market Cap of an asset and its Realized Cap.

Since the Market Cap represents the value the holders are carrying in the present, its comparison against the Realized Cap in the MVRV Ratio tells us about the profit-loss status of the investors as a whole.

As is visible in the above graph, Bitcoin’s MVRV Ratio diverged from Ethereum’s around the start of the bull market. This implies that BTC investors have consistently enjoyed a higher amount of unrealized profits in this cycle.

In the recent market downturn so far, ETH has taken a larger hit than BTC, so its MVRV Ratio has also declined at a faster rate. BTC investors as a whole are still in the green, but ETH holders are now underwater as the indicator for it has dipped under the 1 mark.

To better showcase the disparity in the MVRV Ratio of the two coins, Glassnode has charted the difference between the two.

As displayed in the graph, the difference between the Bitcoin and Ethereum MVRV Ratio has remained positive for 812 consecutive days now, which is the longest streak in history.

At the time of writing, Bitcoin is floating around $79,300, down over 3% in the last seven days.