Ethereum’s growing number of active users may be one reason why investors are putting more money into it – and less into Bitcoin.
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The outflow of currency indicates a shift in holding behavior
This is evident from data from on-chain research agency XWIN Research Ethereum registered a sustained decline in supply on the exchange in March 2026, a sign that more holders are moving their tokens from trading platforms to long-term storage.
A reduced stock market supply usually indicates less intention to sell. At the same time, active addresses on the Ethereum network went up, indicating broader usage across the ecosystem. Stablecoins, decentralized finance and tokenization of real assets all saw increases in activity during the period.
ETHUSD trading at $2,236 on the 24-hour chart: TradingView
Bitcoin didn’t show the same kind of network momentum. Although it posted a 1.80% gain in March, its market capitalization fell 0.41%. Ethereum, on the other hand, rose 7% and expanded its market capitalization by almost 3%. This gap caught the attention of analysts following capital movements in the two largest cryptocurrencies.
Why Ethereum Outperformed Bitcoin
“ETH is currently benefiting from simultaneous capital inflows, tighter supply and ecosystem growth. This positions Ethereum as a structurally stronger asset at its current stage.” – By means of @xwinfinance pic.twitter.com/khcggqJZk6
— CryptoQuant.com (@cryptoquant_com) April 10, 2026
Ethereum is getting hotter than Bitcoin based on volatility measures
The two assets moved largely in the same direction – their price correlation was around 0.94 – but how far they moved told a different story. Ethereum’s realized volatility was 62% this month. Bitcoin was 49%.
According to XWIN researchthat spread positions Ethereum as a higher-beta asset, one that responds more sharply when liquidity conditions change. Traders chasing bigger short-term profits seem to have noticed this.
The Coinbase Premium Gap, a measure of the price difference between Coin base and other exchanges remained negative for Ethereum. However, reports indicate that the economy was showing early signs of tightening – a potential signal that US demand is starting to return.
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Store-of-Value story loses ground to utility play
Bitcoin has long been positioned as digital gold – a place to park value rather than a network to build. That story may lose some of its appeal, at least for now.
Based on XWIN Research’s analysis, attention appears to be shifting to assets that respond more directly to shifts in liquidity and market sentiment. Ethereum, with its broader infrastructure role, is currently attracting that attention.
The analysis could not predict how long the trend would last. What it did say is that Ethereum’s on-chain data and ecosystem activity puts it in a stronger short-term position than Bitcoin. Whether that will be the case as broader market conditions change remains to be seen.
Featured image from Meta, chart from TradingView