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▲ Ethereum (ETH), Bitcoin (BTC)
An analysis has emerged suggesting that Ethereum (ETH) has shown stronger short-term dominance over Bitcoin (BTC) due to a simultaneous decrease in exchange supply, expansion of network activity, and influx of funds.
According to NewsBTC, a cryptocurrency specialized media outlet, on April 11 (local time), on-chain research firm XWIN Research analyzed that Ethereum's holdings on exchanges steadily decreased throughout March 2026. A decrease in exchange supply typically indicates a weakening selling intent, and during the same period, the number of active addresses on the Ethereum network increased. Activities in stablecoins, decentralized finance, and real-world asset tokenization also expanded, leading to an assessment that the overall usability of the Ethereum ecosystem has been strengthened.
The figures also varied. Bitcoin's price rose by 1.80% in March, but its market cap decreased by 0.41%, while Ethereum increased by 7% and its market cap grew by almost 3%. XWIN Research diagnosed, "Ethereum is currently seeing a simultaneous influx of funds, supply contraction, and ecosystem expansion. In the current phase, it is structurally positioned as a stronger asset."
While the direction of the two assets was similar, the difference in volatility was more pronounced. According to the article, the price correlation coefficient between Ethereum and Bitcoin was approximately 0.94, but the monthly realized volatility was recorded at 62% for Ethereum and 49% for Bitcoin. XWIN Research interpreted this as Ethereum exhibiting characteristics of a high-beta asset, reacting more sensitively to liquidity changes. This implies that funds seeking short-term profit opportunities have tilted towards Ethereum.
The Coinbase Premium Gap, which indicates US demand trends, remained in negative territory for Ethereum, but early signs of the gap narrowing were also detected. On the other hand, while Bitcoin has relied on the narrative of digital gold as a store of value, market interest is reportedly shifting to assets that react more directly to recent changes in liquidity and investment sentiment. XWIN Research did not definitively state the duration of this trend, but based solely on on-chain indicators and ecosystem activity, it assessed that Ethereum is in a stronger position than Bitcoin in the short-term structure.
*Disclaimer: This article is for investment reference only and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*
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