Ethereum Surpasses Bitcoin with Rising Market Cap and Network Activity

Ethereum has emerged as the top performer among major cryptocurrencies, with its market capitalization expanding by almost 3% in March. This marks a significant shift in investor attention away from Bitcoin.

Data from on-chain research firm XWIN Research shows that Ethereum's exchange-held supply declined throughout March, indicating a reduction in short-term trading activity. At the same time, active addresses on the Ethereum network increased, suggesting broader usage across its ecosystem.

The Ethereum network saw significant gains in stablecoins, decentralized finance, and real-world asset tokenization, contributing to its growth. In contrast, Bitcoin's market capitalization slipped 0.41%, despite a 1.80% price gain. This disparity drew attention from analysts tracking capital movement across the two largest cryptocurrencies.

Ethereum's realized volatility came in at 62% for the month, higher than Bitcoin's 49%. According to XWIN Research, this positions Ethereum as a higher-beta asset, one that reacts more sharply to changes in liquidity conditions. Traders chasing bigger short-term gains appear to have taken notice.