Ethereum’s realised cap reached new all-time highs this month, indicating that newcomers are accumulating ETH

From the beginning of January to the present, Ethereum’s realised cap has risen almost 50%, touching new all-time highs above $70 billion, according to CoinMetrics.

The data shows that Ethereum’s realized cap has more than tripled after falling below $25 billion during the „Black Thursday“ crash in March 2020.

Realized cap of Ethereum
Realized cap of Ethereum. Source: CoinMetrics
The realised cap metric calculates the supply value of a crypto asset based on the time of each unit’s last on-chain move. The indicator aims to estimate the price actually paid for each ETH in circulation, instead of simply multiplying the current price by the total supply as the market cap does. However, the realised cap cannot take into account coins that are only traded on centralised exchanges and do not move on-chain.

The indicator is designed to address the issue of lost or abandoned coins by ignoring their increase in value since the last time each unit was moved on-chain.

By eliminating the fluctuating capitalisation of dormant coins, the realised cap offers a signal to detect when new capital is entering a given market. CoinMetrics says that a large number of new investors may have bought long-dated whale stocks in ETH during the January bull market.

Furthermore, the report highlights a 5% spike in the number of Ethereum addresses containing more than 10,000 Ether, with 1,241 wallets currently equivalent to $13.8 million or more. Therefore, CoinMetrics concludes that „institutional investors are starting to buy ETH.“

Ethereum’s realised cap growth appears to have outperformed that recorded last year by Bitcoin. On 15 December, Glassnode reported that BTC’s realised cap has grown by 50% since the beginning of 2020. CoinMetrics data indicates that Ethereum has seen an 85% increase over the same period.

Currently, the Blockchain Center’s Flippening Index estimates that Ethereum has gone 71% of the way to overtaking Bitcoin on eight key metrics, a new all-time high for the indicator.

The index shows that Ethereum has already overtaken Bitcoin in terms of fees and number of transactions, and estimates that transaction volume and number of nodes are 99% and 97% higher than BTC, respectively.