Recent trends in the cryptocurrency market indicate an impending altcoin season, as Ethereum (ETH) shows stronger performance than Bitcoin (BTC). This shift in investor attention suggests a reallocation of capital from Bitcoin to Ethereum and other altcoins, according to a CryptoQuant weekly report.
The bull cycle so far had seen ETH underperform against BTC. The tables, however, are now turning. The ETH to BTC relative price has shot up from 0.018 to 0.031, a peak not witnessed since January 24. This alteration in ETH’s standing commenced post the ETH/BTC Market Value to Realized Value (MVRV) ratio plummeting into the extremely undervalued domain in April. ETH has since bounced back, outdoing BTC by a staggering 72%. CryptoQuant experts predict a further rise in this ratio if it crosses its 365-day moving average, resulting in ETH significantly outshining BTC.
With Ethereum now drawing more capital, its spot trading volume has surpassed that of Bitcoin, for the first time in over a year. Last week, ETH’s spot trading volume was recorded at $25.7 billion, slightly ahead of BTC’s $24.4 billion. This is the first occurrence since June 2024 of ETH’s weekly spot trading volume outpacing Bitcoin’s, signifying that the ETH/BTC trading ratio is above 1. The total altcoin trading volume, too, has soared to its highest level since March, standing at $67 billion on July 17.
Furthermore, there’s a noticeable surge in capital being invested into U.S. Ethereum exchange-traded funds (ETFs) compared to Bitcoin ETFs. The ETH/BTC ETF Holding Ratio has risen from 0.05 to 0.12. Additionally, the ETH/BTC exchange inflow ratio, a measure of selling pressure, decreased in May to its lowest since 2020, suggesting that ETH is experiencing much less selling pressure than BTC. This ratio, despite a recent increase, remains significantly below high levels, hinting a bullish scenario – ETH’s performance could continue to overshadow BTC.
