Why Ethereum Outperformed Bitcoin — On-Chain Signals Behind the Capital Rotation via @cryptoquant_com　(Report-#260) March 2026 marked a clear shift toward Ethereum in the crypto market. While Bitcoin gained just +1.83%, Ethereum rose +7.12%, signaling a notable capital rotation. This divergence reflects structural change rather than simple price action. Bitcoin’s market cap slightly declined (-0.43%), whereas Ethereum’s grew (+2.97%), suggesting capital reallocation toward higher return opportunities. Ethereum also showed higher realized volatility (62.8% vs. Bitcoin’s 49.8%), reinforcing its role as a higher-beta asset. Despite a strong correlation (~0.94), ETH reacts more aggressively to shifts in liquidity and risk appetite, effectively acting as a leveraged market beta. More importantly, supply dynamics favor ETH. Continued exchange outflows indicate reduced sell pressure and rising long-term holding. On-chain data further supports this. The Coinbase Premium Gap remains negative but is improving, signaling early-stage recovery in U.S. demand. Meanwhile, Active Addresses continue trending higher, pointing to growing network usage. This combination suggests a typical early-cycle structure: institutional demand has not fully returned, but real usage is already expanding. Ethereum’s ecosystem — including stablecoins, DeFi, and tokenized assets — strengthens its role as a financial infrastructure layer, unlike Bitcoin’s store-of-value focus. Although declining volume implies some liquidity-driven price action, ETH currently benefits from simultaneous capital inflow, supply tightening, and ecosystem growth. This positions Ethereum as a structurally stronger asset in the current phase, with potential to outperform further as liquidity conditions improve. https://t.co/lLsEy6U26f—-On-Chain-Signals-Behind-the-Capital-Rotation