Bitcoin’s Investor Profitability Has Exceeded Ethereum for Over Two Years

New data from Glassnode suggests that Bitcoin’s MVRV (Market Value to Realized Value) has been higher than Ethereum’s for 812 consecutive days. This means that the average BTC investor has accumulated much larger profits than their ETH counterpart since 2023.

Due to recent losses, Ethereum’s MVRV actually fell below 1.0, suggesting that the average investor has lost money. It may be undervalued and well-posed for a resurgence, but this will take time.

Bitcoin vs Ethereum: Which is More Profitable?

Despite a few recent market turmoils, the price of Bitcoin is doing reasonably well right now. Although much of its gains since Trump’s election have been wiped out, its pre-election value spent most of 2024 at a shelf near its previous all-time high.

According to new data from Glassnode, Bitcoin’s investor profitability is far above Ethereum’s.

“Since November 2022 (FTX collapse), Bitcoin’s realized cap has grown by $468 billion (+117%), while Ethereum’s increased by just $61 billion (+32%). Bitcoin investors have held consistently larger unrealized profits than #Ethereum holders since January 2023. BTC investor profitability has exceeded ETH for 812 consecutive days – an all-time record,” Glassnode said.

Glassnode came to these conclusions by analyzing both tokens’ MVRV and their ratio of market value to realized value. This metric compares the listed price of Bitcoin and Ethereum to the actual price at which these tokens were most recently traded.

Despite maintaining similar MVRVs for a prolonged period, Bitcoin is plowing well ahead today:

While Bitcoin has been more volatile than Ethereum, the altcoin has seen a much smaller uptick during bullish cycles. For instance, in the latest bull run between October and December 2024, Bitcoin surged by nearly 70%.

In the same period, Ethereum’s price increase was less than 50%. Yet, if we look at the drop during the current market downturn, BTC lost 3% in the first week of April, while ETH lost over 15%.

Meanwhile, the altcoin’s investor sentiment is also dropping. Major whales who HODL’ed the token for many years are now selling their ETH holdings.

Also, the average Bitcoin holder enjoys an MVRV of around 2.0, meaning that they have huge unrealized gains. Most of their counterparts have an MVRV below 1.0, signifying that they have lost money. These data points are concerning, especially for the median ETH holder.

However, there’s a silver lining. Ethereum recently fell to a yearly low, but there’s also a strong uptick of new investors. New developments, like the SEC approving ETH ETF options trading, could spur a recovery.

In other words, Ethereum may be highly undervalued and, therefore, an attractive investment.

Still, for the time being, Bitcoin holders are in a much better position than ETH holders. Ethereum is still the second-largest cryptoasset by market cap, and it can always make a comeback. This will almost certainly pose a significant challenge.