Ethereum outperforms Bitcoin 2X in Compound Annual Growth Rate over past 4 years

Four-year compound annual growth data for Ethereum and Bitcoin from an on-chain analytics platform glass node It shows that ETH has outperformed Bitcoin since October 2019. Data is available from the two charts below showing his CAGR for both Ethereum and Bitcoin over the last four years.

This period was chosen to capture both traditional Bitcoin halving cycles and typical bull/bear cycles that tend to have similar durations. Bitcoin posted his CAGR of 34.1%, while Ethereum nearly doubled at 66.3%.

eth cagr 4yr
ETH CAGR 4 years | Source: Glassnode

btc cagr 4yr
BTC CAGR 4 years | Source: Glassnode

Ethereum’s CAGR data began in July 2019, and the correlation between Ethereum and Bitcoin has been relatively low since then. Bitcoin’s CAGR peak dates back to 2014, while Ethereum peaked on October 20, 2019.

Bitcoin’s peak CAGR was near 800%, while Ethereum’s was around 350% over the entire period. Both currencies saw their CAGR decline as their market capitalization increased and the market matured. However, Bitcoin has been trending downward at CAGR since 2016, while Ethereum has seen growth in 2019 and 2021.

Additionally, Ethereum’s CAGR has been steadily rising since June, while Bitcoin has remained within the range of 36% to 61% throughout the year. A significant deviation between Bitcoin’s price and his CAGR over his four years occurred around July 2021. Bitcoin’s CAGR has been relatively correlated with its price up to this point. However, as the price of Bitcoin returns to near his 2017 highs, his CAGR falls off a cliff in November 2021, shortly after Bitcoin hit an all-time high.

Following the significant upgrade of the Ethereum network caused by The Merge, does its CAGR indicate it will lead the next bull market? of Bitcoin is headed for the halving.

Since The Merge, Ethereum’s maximum supply has been slowly declining, and increased on-chain activity may accelerate this process. halves with the half-life of However, Ethereum fell short of what is known as the “triple halving” as the effect of The Merge reduced ETH emissions by a third of the halving event.

The last two Bitcoin halvings occurred about 18 months before their record highs. Could the same delay effect appear on Ethereum following The Merge and ignite the next bull market?

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