Bitcoin or Ethereum: Which Is Winning the Store of Value Game?
PLUS: Starknet is quietly the most Ethereum-aligned L2
Hi Investor đ
welcome to a â free edition â of Altcoin Investing Picks, the most actionable crypto newsletter.
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In today's newsletter:
đĄ Bitcoin or Ethereum: Which Is Winning the Store of Value Game?
đŁ Tether Invests in Ledn to Expand Bitcoin-Backed Lending
đ Starknet is quietly the most Ethereum-aligned L2
Letâs dive in!
đĄ Insight
Bitcoin or Ethereum: Which Is Winning the Store of Value Game?
Big institutional money is rewriting the playbook for BTC and ETH â and we just got the clearest snapshot yet of how.
A fresh report from Keyrock and Glassnode breaks down on-chain behavior across five metrics to answer one question:
đ Are Bitcoin and Ethereum being used as stores of value (SoV), or something else entirely?
Hereâs the TL;DR for investors who want the alpha without the fluff:
Bitcoin = Digital Gold (Still)
61% of BTC hasnât moved in over a year.
Turnover is just 0.61% per day â one of the lowest of any global asset, only 2x gold.
BTC on exchanges is down to 14.3%, while ETF holdings now represent 6.7% of supply.
Anchored float (sticky supply) has doubled to 6.7% thanks to ETFs.
Only ~4.7% of BTC is âproductive floatâ, meaning used in lending, LPs, or rehypothecation.
Takeaway: Institutions and OG holders are hoarding BTC like digital savings. Itâs not being used â itâs being parked. Thatâs bullish for long-term price floor narratives.
Ethereum = Digital Oil + Reserve Collateral
ETH turnover is 1.34% per day â 2x BTC, but still far below fiat-like velocity.
ETHâs 1+ year dormancy dropped to 51.7%, meaning old coins are moving more.
Staking + ETFs = 25.1% of ETH supply locked in sticky contracts.
Productive float is a massive 16% â ETH is powering DeFi, staking, LPs, and being used as working capital.
Exchange balances plunged from 29% to 11.3%, as ETH flows into institutional wrappers and on-chain finance.
Takeaway: ETH behaves like a hybrid asset â itâs a reserve for the crypto economy and a tool to earn yield and secure networks. Thatâs more dynamic than BTC, but also more complex.
Why This Matters for Investors
Narratives drive flows. BTC is increasingly a âbuy, hold, forgetâ play. ETH is a âdeploy, earn, repeatâ engine.
ETHâs role in the on-chain economy is growing. If you believe crypto infra will keep expanding, ETH is the fuel.
Both assets are institutionalizing. ETF and DAT adoption shows real-world demand for long-term custody, not just trading.
What to Watch Next
ETHâs productive float keeps rising â bullish for liquid staking, LRTs, and collateralized altcoins.
BTCâs growing role as pristine collateral â bullish for tokenized treasuries, ETF yield curves, and OTC lending platforms.
đŁ Update
Tether Invests in Ledn to Expand Bitcoin-Backed Lending
Tether has made a strategic investment in bitcoin-backed lender Ledn to expand access to credit secured by BTC.
Ledn has originated more than $2.8 billion in BTC-backed loans to date, including over $1 billion in 2025 alone.
The crypto-backed lending market is forecast to grow nearly eightfold by 2033, driven by demand for liquidity without selling digital assets.
đ Signal
Starknet is quietly the most Ethereum-aligned L2
While Base, Arbitrum, and Optimism have grown fast, only a fraction of their assets actually originate from Ethereum L1:
Base: 24% of assets are Ethereum-native
Arbitrum: 28%
Optimism: 48%
Starknet: a staggering 97%
That means Starknet isnât just compatible with Ethereum â itâs composed of Ethereum.
For investors who care about ETH security, L1 guarantees, and real property rights, Starknet is behaving more like an Ethereum extension than a sidecar.
Take action đ
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