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A new Glassnode report released November 15, 2025, shows Ethereum (ETH) long-term holders are mobilizing their coins at a rate three times higher than Bitcoin (BTC) holders. This “velocity” gap underscores Ethereum’s role as a high-utility network versus Bitcoin’s dominance as “digital gold.”
Key Insights from the Study
– Spending Behavior: ETH investors actively use tokens for DeFi, staking, NFTs, and gas fees, driving faster turnover. BTC holders hoard assets, with supply shifting to long-term storage.
– On-Chain Data: Ethereum’s ecosystem encourages frequent movement—old coins reactivate 3x quicker than Bitcoin’s.
– Network Fundamentals: Ethereum’s ~12-second block times enable 15-30 transactions per second (TPS) on Layer 1, far outpacing Bitcoin’s 10-minute blocks and ~7 TPS.
Why Ethereum Sees More Activity
– Proof-of-Stake Efficiency: Post-2022 Merge, faster finality and lower energy use boost usability.
– Layer-2 Scaling: Solutions like Arbitrum and Base deliver thousands of TPS at near-instant speeds and fractions of a cent.
– Utility-Driven Demand: ETH powers real-world applications, from stablecoin transfers to decentralized exchanges.
In contrast, Bitcoin prioritizes security and scarcity, with Lightning Network enabling fast micropayments off-chain.
Implications for Crypto Investors
This divergence signals maturing markets: Bitcoin for wealth preservation, Ethereum for everyday blockchain use. As adoption grows, Ethereum’s higher velocity could fuel volatility but also innovation in Web3. Analysts predict continued ETH outperformance in transactional ecosystems, while BTC retains store-of-value appeal.
The Glassnode findings highlight why Ethereum remains the backbone of decentralized finance—proving speed and utility drive user engagement in 2025’s evolving crypto landscape.
