Bitcoin vs Ethereum – Every $1 invested in either of these cryptos will…
The post Bitcoin vs Ethereum – Every $1 invested in either of these cryptos will… appeared on BitcoinEthereumNews.com.
Both Bitcoin and Ethereum hiked by over 3% in the last trading session Compared to ETH, BTC seemed overvalued at press time Bitcoin and Ethereum have long been two of the market’s biggest cryptos. However, tribalism within the community has often placed them at opposite ends of any spectrum, which is why comparisons are common. According to recent data though, Bitcoin may be delivering a greater response for every dollar invested, than Ethereum. This differential response may indicate market perceptions regarding the valuation of these two prominent cryptocurrencies. Bitcoin and Ethereum see different investment impact According to the Realized Capitalization Multiplier indicator from CryptoQuant, in 2024, for every $1 invested in Bitcoin, its market capitalization increased by $5. On the contrary, for Ethereum (ETH), it increased by only $1.3. To put it simply, Bitcoin’s market capitalization is more responsive to new investments than Ethereum’s. Considering the Realized Capitalization Multiplier, Bitcoin’s greater responsiveness to new investments suggests a higher multiplier. This could imply that Bitcoin is perceived as more overvalued, relative to the actual realized value of its coins. On the other hand, Ethereum’s lower hike in market cap per dollar invested suggests it has a lower multiplier. This may be a sign that its market price is closer to its realized value, potentially making it more stable or undervalued. What can be drawn from Bitcoin and Ethereum’s MVRV? A recent analysis of the Market Value to Realized Value (MVRV) ratios for Bitcoin and Ethereum, based on data from Glassnode, highlighted differing trends for these two cryptocurrencies over the last few weeks. For Bitcoin, the MVRV ratio has shown more uptrends than downtrends throughout July. At the time of writing, the MVRV stood at over 2%. Typically, an MVRV ratio approaching the 3% mark indicates being overvalued. This can also be…
Filed under: News - @ July 28, 2024 9:26 am