Journalist
Aware:
Ethereum [ETH] It looks bigger if you count the heads. bitcoin [BTC] It looks stronger if you count coins.
On paper, the former surpasses the latter in user engagement. But Bitcoin supply on exchanges is shrinking in a much more controlled way, while Ethereum liquidity is moving in a completely different way.
The contrast shows a lot about how each asset is used, maintained and valued right now.
The Ethereum User Advantage
As of press time, the network has 167.96 million non-empty wallets, almost three times Bitcoin’s 57.62 million. That gap is important because it shows that Ethereum is being used.
Source: Sentiment
Ethereum wallets are now active endpoints across the board. The rise of non-empty wallets means that new users are still entering the ecosystem, even as prices move sideways. Bitcoin, on the other hand, remains more concentrated.
AMBCrypto previously reported that Ethereum network growth hit multi-month highs in December and that new wallet creation is increasing.
Data from Santiment showed that nearly 200,000 new ETH wallets were added on December 2 and 15, levels not seen since Ethereum’s late summer rally.
The contrast is clear
While Ethereum leads wallet activity, the supply of Bitcoin on exchanges has been shrinking.
According to Glassnode, BTC exchange balances have been gradually declining, from approximately 2.98 million in mid-November to approximately 2.94 million in mid-December. Despite price fluctuations, holders are not rushing to sell.
Source: Glassnode
Exchange balances are important because they show immediate selling pressure. Coins held on exchanges are less likely to trade quickly. In that sense, reducing Bitcoin trading means trust, even with fewer wallets overall.
What ETH/BTC says
The pair attempted a brief breakout in early December but failed to maintain the gains and fell quickly. Since then, ETH has struggled to outperform BTC on a relative basis, with bounces proving shallow and short-lived.
Although Ethereum attracts more users, capital still favors the stability of Bitcoin.
Source: TradingView
Traders appear more comfortable holding BTC during periods of uncertainty, while ETH remains more risk sensitive. For now, the strength of participation has not translated into relative price leadership.
Final thoughts
- Ethereum leads the number of users with 168 million wallets, but Bitcoin’s dwindling exchange offering shows greater confidence.
- Until ETH/BTC regains momentum, Bitcoin will remain the asset of choice.
