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 crash of “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.
Admittedly, the report also noted a 5% increase in the number of Ethereum addresses 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 number of addresses holding at least 10K ETH has increased significantly since the beginning of 2021.
These large addresses, each holding roughly at least $ 12M, potentially signal that institutional investors are starting to buy ETH.
Read more: https: //t.co/Pgg3ltOwva pic.twitter.com/Zw4RisPL4q
– CoinMetrics.io (@coinmetrics) January 26, 2021
The growth of Ethereum
Sure enough, Glassnode reported that BTC’s realized capitalization had grown by 50% from the beginning of 2020 to December 15. Data from CoinMetrics indicates that Ethereum had seen an 85% increase over the same period.
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 the law of life. Anyone who only looks at the past or the present will miss the future.
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