Bitcoin vs Ethereum: Scarcity and Utilization Diverge

The question of whether to invest in Bitcoin or Ethereum is a recurring one, especially at the start of each quarter. To answer it, one needs to understand the fundamental differences between the two networks. Bitcoin is a payment and store-of-value network with a fixed money supply, while Ethereum is a platform for running programs and managing outside capital.

The scarcity of Bitcoin is built into its protocol, with a hard ceiling of 21 million units. As of October 2, 2026, roughly 20.09 million of them have been created, which is just under 96 percent. New Bitcoin arise solely as a reward for mining, and this reward halves roughly every four years.

Ethereum, on the other hand, has no fixed ceiling, with new units arising as a reward for validators. Part of every transaction fee has been permanently destroyed since the fee reform of 2021, affecting the supply growth. The Ethereum supply grew by roughly 2,840 units over 24 hours on October 2, corresponding to about 0.85 percent growth.

The usage of Ethereum is measured by the capital tied up in its applications, known as the total value locked. On October 2, 2026, roughly $96.8 billion sat in such applications across all blockchains, with $54.4 billion falling to Ethereum, or 56 percent. Bitcoin accounted for $4.6 billion and thus just under 5 percent.

Ethereum's market capitalisation is roughly $336 billion, a good five times lower than Bitcoin's $1,742 billion. Bitcoin is thus worth a good five times Ethereum. Measured against the entire crypto market of roughly $3,080 billion, Bitcoin accounted for about 56.5 percent, the so-called dominance.

Ethereum's network has been secured through staking since 2022, with anyone who deposits Ether receiving a share of new units and fees. The size of this yield is not fixed, falling the more Ether are deposited in total, and rising when the network is heavily used.