Ethereum (ETH) metrics indicate that the digital currency may be experiencing greater scarcity than previously projected. On-chain data reveals that Ethereum is now being accumulated at a faster rate than Bitcoin.
The Ethereum and Bitcoin Divergence

Leon Waidmann from BTC-Echo highlights that Ethereum is becoming scarcer than Bitcoin. While individual performance metrics for BTC and ETH are important, their correlation per exchange balances is crucial.

Glassnode data shared by Waidmann shows that the current Ethereum exchange balance stands at 10.189%, compared to Bitcoin’s 15.08%, indicating a tightening gap.

Since the spotlight on spot Ethereum ETFs, demand for ETH has surged, with investors buying Ethereum at a frantic pace, leading to a drain on trading platforms. This investor behavior is understandable, given the anticipated Wall Street interest in Ethereum upon ETF launch.

This projection mirrors the trend seen with spot Bitcoin ETFs. When the BTC ETF launched in January, major firms like Susquehanna International Group (SIG) aggressively purchased Bitcoin, driving its price to an all-time high of $73,750.07.

Despite the fast-draining exchange balance for Ethereum, its price impact remains modest. Currently, Ethereum trades at $2,983.03, down 2.31% in the past 24 hours, with a 24-hour low and high of $2,956.99 and $3,080.11, respectively.
Revival Plans for ETH

The future growth of ETH hinges on the forthcoming decision from the US SEC. After greenlighting the 19b-4 forms for the spot Ethereum ETF application, the wait for S-1 approval is near. While the launch timeline is speculative, the next two weeks are pivotal. ETF Store President Nate Geraci believes the regulator will expedite the process to start trading the Ethereum ETF within this period.

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