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.

Bitcoin’s simple allure as a digital goldmine is pulling in institutional investors, setting it apart from Ethereum’s intricate DeFi niche.

The ether-to-bitcoin market cap ratio has plunged to 24.52%, its lowest since April 2021, signaling #Bitcoin‘s rising dominance and… pic.twitter.com/866x3ew7G6

— Kyledoops (@kyledoops) November 6, 2024

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.

According to DeFiLlama, the TVL of Ethereum Layer2 network Taiko has increased by more than 1,000% to $81 million in the past month, setting a new record high. The TVL of native DEX Panko Finance and lending protocol Avalon Finance both exceeded $30 million. TaikoScan showed that…

— Wu Blockchain (@WuBlockchain) November 6, 2024

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.

Within an hour, another coin holding address of an ancient Ethereum whale recharged 15,000 ETH to the Kraken exchange, worth about $39.38 million; the whale currently still holds 10,000 ETH; since September 22, 2024, it has sold a total of 65,000 ETH, about $164 million.…

— Wu Blockchain (@WuBlockchain) November 6, 2024

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.

On November 5, the Bitcoin spot ETF had a total net outflow of $117 million. The Ethereum spot ETF had a total net inflow of $0.00 yesterday. https://t.co/59u0BnEqLG

— Wu Blockchain (@WuBlockchain) November 6, 2024