Ethereum, an advantage over Bitcoin... will it seize short-term dominance in virtual assets?

▲ Ethereum (ETH), Bitcoin (BTC)

An analysis suggests that Ethereum (ETH) has shown stronger short-term dominance over Bitcoin (BTC), driven by a simultaneous decrease in exchange supply, expanded network activity, and capital inflows.

According to the cryptocurrency specialized media NewsBTC 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 weakened selling intent, while the number of active addresses on the Ethereum network increased during the same period. With the expansion of activities in stablecoins, decentralized finance (DeFi), and real-world asset tokenization sectors, the overall usability of the Ethereum ecosystem has been strengthened.

The figures were also mixed. Bitcoin's price rose by 1.80% in March, but its market capitalization decreased by 0.41%. In contrast, Ethereum rose by 7%, and its market capitalization increased by nearly 3%. XWIN Research diagnosed, "Ethereum is currently experiencing capital inflows, supply reduction, and ecosystem expansion simultaneously. In the current phase, it is structurally positioning itself 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 as 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 capital seeking short-term profit opportunities has tilted towards Ethereum.

The Coinbase premium gap, which indicates US demand trends, remained negative 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 shifting towards assets that react more directly to recent liquidity and changes in investor sentiment, the media reported. While XWIN Research did not definitively state the duration of the trend, based solely on on-chain indicators and ecosystem activity, it assessed that Ethereum holds a stronger position than Bitcoin in the short-term outlook.

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