Is the Crypto Rally Sustainable? On-Chain Data for Bitcoin and Ethereum Says Yes
If you’ve been nervous that the recent crypto pump was just another “bull trap,” you can breathe a little easier. According to the latest on-chain data for Bitcoin (BTC) and Ethereum (ETH), the market isn’t just growing—it’s growing healthily.
As of late February 2026, a comprehensive market report has validated that the current price levels are supported by strong network fundamentals rather than just speculative hype. Unlike the “bubble” phases of previous years, the data shows that coins are moving off exchanges and into long-term storage at a record pace. In short: investors aren’t just looking for a quick flip; they are settling in for the long haul.
What on-chain metrics are proving the crypto market is “healthy” right now?
The “health” of a blockchain is usually measured by how many people are using it and where the money is sitting. The latest report highlights three major “green flags” that suggest this rally has legs:
- Exchange Reserve Depletion: Bitcoin and Ethereum reserves on centralized exchanges have hit multi-year lows. When there is less “sellable” supply on exchanges, any increase in demand leads to much sharper price jumps.
- Stablecoin Inflows: We are seeing a massive surge in stablecoin “dry powder” moving onto exchanges. This suggests that traders are sitting on the sidelines with cash, ready to “buy the dip” the moment a correction occurs.
- Realized Cap Growth: The “Realized Cap” (which measures the price at which every coin last moved) is steadily climbing. This means the “floor price” of the market is rising as new investors enter at higher price points, reducing the likelihood of a massive crash.
Why are low exchange reserves a big deal for Bitcoin’s price floor?
Think of exchange reserves like the inventory at a car dealership. If everyone wants a truck but the dealer only has two on the lot, the price of those two trucks is going to skyrocket.
In 2026, we are seeing a “supply shock” in real-time. Large institutions and Spot ETFs are absorbing BTC faster than miners can produce it. Because this Bitcoin is being moved into “cold storage” (private wallets), it’s effectively taken out of circulation. This creates a “thin” sell side, meaning it takes much less buying pressure to move the needle toward $100,000.
Are active addresses and network fees signaling a sustainable Ethereum pump?
While Bitcoin handles the “digital gold” narrative, Ethereum is proving its health through pure utility. The report shows that active addresses on the Ethereum mainnet and its Layer 2 companions (like Arbitrum and Base) have surged by 22% since January.
More importantly, the Ethereum burn rate has remained consistent. Because of the fee-burning mechanism ($E = mc^2$ logic doesn’t apply here, but the math of $Supply = Issuance - Burn$ does), Ethereum is currently “ultrasound,” with its total supply slightly shrinking as network activity ramps up.
“We aren’t seeing the ‘retail euphoria’ levels of 2021 yet,” noted one analyst. “What we’re seeing is ‘institutional consolidation.’ The whales are buying, the supply is shrinking, and the network is actually being used. That is the definition of a healthy market.”
What is the NVT Ratio telling us about a potential crypto market top?
For the technical nerds out there, the NVT Ratio (Network Value to Transactions) is currently in the “Goldilocks zone.”
$$NVT = \frac{\text{Market Cap｝｝{\text{Daily Transaction Volume｝｝$$
If this number gets too high, it means the price (Market Cap) is way ahead of the actual usage (Transaction Volume), signaling a bubble. Right now, the NVT for both BTC and ETH is relatively low compared to previous peaks. This suggests that even though prices are high, they are actually undervalued relative to the amount of money moving across the networks every day.
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