Bitcoin's Realized Capitalization Surges 117% Since FTX Crash, Outperforming Ethereum by 85%

Bitcoin (BTC) has outperformed Ethereum (ETH) by over 85% in realized market capitalization growth, according to data provided by an on-chain analytics platform. This significant disparity highlights Bitcoin's dominance in the cryptocurrency market, not only as the largest cryptocurrency by market capitalization but also in terms of total invested capital, represented as realized capitalization.

The data reveals that Bitcoin's realized capitalization has surged by $468 billion, marking an increase of over 117% since the FTX crash in November 2022. In contrast, Ethereum's realized capitalization has grown by $61 billion, a 32% increase over the same period. This metric, which measures the actual capital flow of the cryptocurrencies, indicates that Bitcoin has retained investors' confidence despite recent market volatilities.

Both Bitcoin and Ethereum have experienced positive growth in this metric. However, Ethereum's growth lags behind Bitcoin, which saw a rapid increase of over 117% in about two years. This trend suggests that Bitcoin has maintained higher investor profitability than Ethereum for 812 consecutive days, marking the longest stretch ever recorded. The average Bitcoin holder is currently in profit, while Ethereum's market value to realized value (MVRV) has fallen below 1.0 since March 2025, indicating that the average Ethereum investor is now underwater.

The underperformance of Ethereum is evident in its recent price movements. Ethereum's price has dropped below $1,500, reaching a two-year low and experiencing a 64% decline from its cycle peak of $4,000. This price drop has contributed to the negative sentiment surrounding Ethereum, as indicated by various sentiment analysis tools.

The disparity in performance between Bitcoin and Ethereum can be attributed to several factors. Bitcoin's status as the original and most well-known cryptocurrency has given it a significant advantage in terms of market recognition and adoption. Additionally, Bitcoin's limited supply and deflationary nature have made it an attractive investment option for those seeking a store of value. In contrast, Ethereum's primary use case as a platform for decentralized applications and smart contracts has faced challenges and competition from other blockchain platforms. The recent underperformance of Ethereum highlights the need for the platform to address these challenges and innovate to maintain its relevance in the cryptocurrency market.

The data on realized market capitalization growth and the BTC/ETH ratio provide valuable insights into the relative performance of Bitcoin and Ethereum. These metrics underscore Bitcoin's dominance in the cryptocurrency market and highlight the challenges faced by Ethereum in maintaining its competitive edge. As the cryptocurrency market continues to evolve, it will be important for Ethereum to address these challenges and innovate to remain a relevant player in the industry.