Crypto News

Bitcoin Dominance Grows As Institutional Investors Favor Simplicity, While Ethereum DeFi Thrives

Bitcoin’s appeal as “digital gold” is captivating institutional investors, reinforcing its status as a straightforward, inflation-resistant asset.

This growing interest has intensified Bitcoin’s dominance over Ethereum, whose focus on decentralized finance (DeFi) attracts a more niche audience. The market cap ratio of ether to bitcoin has plunged to 24.52%, its lowest since April 2021, reflecting a preference shift toward Bitcoin, largely driven by ETF investment activity.

Meanwhile, Ethereum’s DeFi ecosystem is experiencing a remarkable surge. According to DeFiLlama, the total value locked (TVL) in the Ethereum Layer 2 network Taiko has grown over 1,000% in the past month, reaching a record high of $81 million.

Within Taiko, the decentralized exchange (DEX) Panko Finance and lending protocol Avalon Finance each saw their TVL surpass $30 million, signaling a strong demand for DeFi services on this Layer 2 network. On November 4, Taiko’s daily transaction volume also reached a new milestone of 5 million, as reported by TaikoScan.

Ethereum Whale Makes Large Transaction 

Amid this DeFi boom, a significant Ethereum whale recently made headlines with a large transaction. This “ancient” whale address deposited 15,000 ETH (worth approximately $39.38 million) into the Kraken exchange. The same whale has offloaded around 65,000 ETH (about $164 million) since September 22, 2024, signaling potential profit-taking amid Ethereum’s fluctuating market dynamics. As of now, the whale retains a balance of 10,000 ETH.

Interestingly, the Ethereum spot ETF showed a net inflow of $0.00 yesterday, indicating muted interest in Ethereum-based ETFs compared to Bitcoin. For now, Bitcoin’s appeal as a “digital goldmine” is resonating with investors, while Ethereum’s DeFi sector continues to attract a robust user base, particularly on innovative networks like Taiko. As investor preferences continue to diverge, both ecosystems are finding unique paths to growth in the evolving crypto landscape.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Image Source: fellowneko/123RF // Image Effects by Colorcinch

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