The spotlight in the cryptocurrency sector is shifting from Bitcoin to Ethereum and other altcoins, as evidenced by recent trading volumes. According to a report from CryptoQuant, the volume of Ethereum spot trading has towered over Bitcoin’s for the first time since June 2024.
Specifically, last week’s Ethereum spot trading volume reached a massive $25.7 billion, outperforming Bitcoin’s $24.4 billion. This notable shift has pushed the ETH/BTC spot volume ratio above 1, indicating a growing investor preference for Ethereum and altcoins.
Ethereum’s price ratio against Bitcoin has also seen a notable rise, jumping from 0.018 to 0.031, its highest point since January. Analysts attribute this to Ethereum’s recovery after hitting significantly undervalued levels earlier this year.
Data from US ETFs also suggests a shift in capital allocation, with more investments flowing towards Ethereum relative to Bitcoin. The ETH/BTC ETF holding ratio has doubled from 0.05 to 0.12. Moreover, Ethereum seems to be experiencing less selling pressure compared to Bitcoin, as indicated by lower exchange inflows. This suggests that Ethereum’s outperformance may continue.
The report also highlights a surge in altcoin spot trading volume, which reached its highest level since March, pointing towards a capital rotation. The spot trading volume for altcoins totaled $67 billion on July 17, reflecting renewed trader interest in these coins.
Despite a recent dip in Ethereum prices, many analysts predict a continued uphill trajectory due to sustained institutional and corporate buying pressure. Some even foresee a sharp ascent to $8,000 in the coming months.
