Ethereum's realized capitalization has surged by almost 50% in January to date to make new all-time highs above $70 billion, as per CoinMetrics.
The data indicates that Ethereum's realized cap has more than tripled after dropping below $25 billion during March 2020's "Black Thursday" crash.
Ethereum's realized cap: CoinMetrics
The realized capitalization metric calculates the value of a crypto asset’s supply according to when each unit last moved on-chain. The metrics aim to estimate the price actually paid for each ETH in circulation - but rather simply multiply the current price by the total supply as the market cap does. But, the realized cap cannot indicate coins that are merely traded on centralized exchanges and do not move on-chain.
The metrics aim at offering a way to compensate for lost or unclaimed coins via neglecting their appreciation from the time each unit was last transferred on-chain.
Eliding the fluctuating capitalization of dormant coins, realized cap provides a signal for when new capital is flooding into a given market, as CoinMetrics inferred that many new investors may have been purchasing the bags of seasoned ETH whales during January’s bull market.
As per the report, a 5% spike in the number of Ethereum addresses holding over 10,000 Ether, as 1,241 wallets now hold $13.8 million or more in ETH. Therefore, CoinMetrics summed up that "institutional investors are starting to buy ETH."
The increase of Ethereum's realized cap seems to have outperformed that of Bitcoin's last year. As Glassnode reported, BTC's realized cap had grown 50% since the start of 2020 up to December 5. CoinMetrics' data shows Ethereum had experienced an 85% increase during the same period.
As per Blockchain Center's Flippening Index's estimation, Ethereum is currently 71% of the way to surpassing Bitcoin in accordance with eight key metrics - making a new all-time high for the metrics.
The index indicates Ethereum has already surpassed Bitcoin by transaction fees and transaction count and evaluates that transaction volume and node count are at 99% and 97% of Bitcoin's respectively.