According to CoinMetrics, so far Ethereum’s realized capitalization has risen by almost 50% in January. And so it sets new all-time highs above $ 70 billion.
So this data shows that Ethereum’s realized capitalization has more than tripled. Specifically, since it fell below $ 25 billion, during the fall of the “Black Thursday” in March 2020.
Ethereum’s realized capitalization
To better understand, the realized capitalization metric calculates the value of the supply of a crypto asset. Based on when each unit in the chain was last moved.
Furthermore, the indicator seeks to estimate the price actually paid for each ETH in circulation. Instead of simply multiplying the current price by the total supply, as market capitalization does.
In effect, the indicator is designed to provide a way to compensate for lost or unclaimed coins. Ignoring your appreciation from the last time each unit was transferred on chain.
In these circumstances, by ignoring the fluctuating capitalization of inactive currencies, the realized capitalization provides a signal of when new capital is flowing into a given market.
Therefore, CoinMetrics infers that many new investors may have bought the experienced Whales ETH exchanges, during the January bull market.
Institutional investors are starting to buy ETH
In particular, institutional investors are starting to become more interested in Ethereum.
True, the report also noted an increase of 5% in the number of addresses ethereum containing more than 10,000 ETH. With 1,241 wallets currently holding $ 13.8 million or more in ETH.
As a consequence, CoinMetrics concludes that «institutional investors are starting to buy ETH».
The growth of Ethereum
Indeed, the growth of capitalization performed ethereum seems to have surpassed that of last year Bitcoin.
Effectively, Glassnode reported that BTC’s realized capitalization had grown 50% from early 2020 to December 15. Data from CoinMetrics indicates that Ethereum had seen an 85% increase over the same period.
In fact, the Blockchain Center’s Flippening Index currently estimates that Ethereum is 71% of the way to outperform Bitcoin based on eight key metrics.
In closing, the index notes that Ethereum has already surpassed Bitcoin in terms of transaction fees and number of transactions. And, he estimates that the transaction volume and the number of nodes are at 99% and 97% of Bitcoin, respectively.
I say goodbye with this phrase from John F. Kennedy: «Change is a law of life. Anyone who only looks to the past or the present will miss the future“.