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Ethereum is gaining momentum as it surpasses Bitcoin in spot trading volume, signaling a potential shift in crypto market dynamics.
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Recent data highlights a significant rotation of capital from Bitcoin to altcoins, with Ethereum ETFs experiencing consistent inflows while Bitcoin funds see outflows.
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According to COINOTAG, “Ethereum’s rise in market share and trading volume reflects growing institutional confidence and a broader altcoin resurgence.”
Ethereum overtakes Bitcoin in spot volume, driving altcoin momentum as Bitcoin dominance dips and ETH ETFs see sustained inflows.
Ethereum Surpasses Bitcoin in Spot Volume, Marking a Market Shift
In a notable development, Ethereum (ETH) has overtaken Bitcoin (BTC) in weekly spot trading volume for the first time since mid-2024. Last week, ETH recorded $25.7 billion in spot volume compared to Bitcoin’s $24.4 billion, indicating a shift in investor preference. This milestone is underscored by Ethereum’s 72% outperformance against Bitcoin since April, with the ETH/BTC ratio climbing to 0.031—the highest in over six months. Such figures suggest a growing appetite for Ethereum amid evolving market conditions, reflecting its increasing role as a leading digital asset beyond Bitcoin’s traditional dominance.
Institutional Flows Favor Ethereum ETFs Over Bitcoin
Institutional interest is further evidenced by exchange-traded fund (ETF) flows in the U.S. market. Ethereum-focused ETFs have experienced 15 consecutive days of net inflows, while Bitcoin ETFs have reversed course, registering consistent outflows. The ETH/BTC ETF holding ratio has more than doubled recently, moving from 0.05 to 0.12, highlighting a strategic pivot among institutional investors. This trend aligns with on-chain data showing lower ETH inflows to exchanges relative to Bitcoin, which typically signals reduced selling pressure and potential for sustained price strength in Ethereum.
Declining Bitcoin Dominance Fuels Altcoin Rally
Bitcoin’s market dominance has declined sharply, dropping nearly 3% in a single week to 60.78%, according to Glassnode data. This erosion of dominance is one of the steepest weekly declines observed this year and coincides with a surge in altcoin activity. Total altcoin spot trading volume recently surged to $67 billion, the highest level since March 2025, suggesting renewed investor interest across a broader range of digital assets. Social sentiment metrics from Santiment corroborate this shift, showing increased discussions around altcoins on platforms like X, Telegram, and Reddit, even as Bitcoin’s price reached $123,000.
Altseason Signals and Market Sentiment
Despite some cooling in tokens such as Solana (SOL) and XRP (XRP), the market is exhibiting early signs of an altseason. The Altcoin Season Index, which measures relative strength of altcoins versus Bitcoin, peaked at 55 earlier this week before retreating to 34. While a confirmed altseason typically requires this index to surpass 75, the current data points to building momentum. If trading volumes, ETF inflows, and social sentiment continue to align, the market may be poised for a sustained altcoin rally, offering diversified opportunities for investors beyond Bitcoin.
Conclusion
The recent market developments underscore a pivotal moment in the crypto ecosystem, with Ethereum leading a rotation of capital away from Bitcoin and into altcoins. Institutional flows and on-chain metrics reinforce Ethereum’s growing prominence, while declining Bitcoin dominance opens the door for broader altcoin participation. Although the altseason is not yet fully confirmed, the convergence of volume, sentiment, and ETF data suggests that investors should closely monitor these trends for potential opportunities in the evolving digital asset landscape.
