Bitcoin and Ethereum Diverge: A Tale of Two Monetary Universes
A recent joint report from Glassnode and Keyrock has shed light on the diverging paths of Bitcoin (BTC) and Ether (ETH), indicating that they now operate in distinct monetary universes. The study highlights that Bitcoin is transitioning into a savings-driven, low-velocity asset, whereas Ether is rapidly evolving into a productive on-chain asset that powers staking, collateral, and institutional wrappers.
The key takeaways from the report include:
- Bitcoin’s dormancy and turnover now resemble gold more closely than fiat currencies.
- Ether’s long-term holders are spending coins at a rate three times faster than BTC holders.
- Both assets are leaving exchanges for ETFs, DATs, and staking at an accelerating rate.
Bitcoin’s Low-Velocity Profile and Ether’s Productive Float
Glassnode noted that 61% of Bitcoin hasn’t moved in a year, with turnover at just 0.61% of free float per day, one of the lowest-velocity profiles among major global assets. This behavior is more akin to gold than money in motion, with Bitcoin firmly in “Store-of-Value” territory.
In contrast, Ether is shifting in the opposite direction, with long-term holders mobilizing dormant coins three times faster than BTC holders. This pattern reflects “utility-driven behavior rather than hoarding,” according to Keyrock. ETH’s turnover sits around 1.3% per day, double that of Bitcoin, and 1 in 4 Ether is now locked in staking or ETFs, creating a massive productive float that powers DeFi and liquid staking systems.
Exchange Balances Collapse as Coins Flow into Institutional Custody
Exchange balances for both assets are collapsing, with BTC down 1.5% and ETH down almost 18%, as coins flow into spot ETFs and digital asset investment vehicles. Analysts view this migration into “sticky” institutional custody as a significant structural shift, with Bitcoin becoming more like a digital savings bond and Ether becoming the operational backbone of on-chain activity.
Despite this widening behavioral gap, some analysts interpret the BTC-ETH dynamic in different ways. Rather than viewing Ethereum’s high activity as a sign of strength, 10x Research argued it may reflect structural fragility, especially as Bitcoin continues to dominate institutional treasury flows.
Rising Structural Risk in ETH Against BTC
A recent 10x report suggested that shorting ETH could serve as a hedge against Bitcoin’s rising institutional momentum. The firm claimed Ether-focused companies are running low on dry powder, weakening the “digital asset treasury” narrative that once drove accumulation.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. For more information, visit the original source: https://cointelegraph.com/news/bitcoin-ethereum-now-operate-in-different-monetary-universes-glassnode-keyrock
