The actual market cap of Ethereum increased by almost 50 percent in January to over $ 70 billion, an all-time high, according to CoinMetrics.
According to the data, the actual market cap of Ethereum has more than tripled since it dropped below $ 25 billion in the market crash in March 2020.
The actual market cap measure measures the value of the supply of a crypto asset against the last time each unit was moved on the chain. The indicator actually calculates the price paid for each ETH in circulation, rather than multiplying the total supply by the current exchange rate, as is done when measuring market value. However, the actual market value does not take into account only the cryptocurrencies that are traded on central exchanges and are not moved on the chain.
At the same time, the indicator, which does not take into account lost crypto coins, can signal when new capital enters a certain market. CoinMetrics data shows that many new investors bought Ether during the bull market in January.
According to the report, there was a 5 percent increase in the number of addresses containing more than 10 thousand ETH, currently 1,241 wallets hold 13.8 million USD. Based on this, CoinMetrics stated that institutional investors started buying ETH.
Bitcoin’s actual market capitalization surpassed Bitcoin’s, apparently over the past year. Based on Glassnode data While the actual market value of BTC increased by 50 percent from the beginning of 2020 to December 15, Ethereum saw a growth of 85 percent in the same period.