Ethereum News Today: Ethereum's Market Share Surges 11.6% as Institutional Capital Flows In

Institutional capital is increasingly flowing into altcoins, with Ethereum (ETH) leading the charge. This surge in interest is driven by regulatory clarity and the anticipation of exchange-traded fund (ETF) approvals, which have reignited enthusiasm for ETH and other layer 1 cryptocurrencies. The GENIUS Act, recently signed into law, has provided clear rules for stablecoin issuance, further boosting interest in ETH and other layer 1s like SOL, XRP, and ADA, which serve as the infrastructure for stablecoins.

ETH's perpetual open interest has soared from under $18 billion to over $28 billion in just one week, indicating significant institutional involvement. This shift is also evident in derivatives markets, where ETH options are flashing bullish signals. Traders are buying call spreads targeting $3,400–$4,500 for Q4 expiries, betting on continued upward movement. Meanwhile, Bitcoin's dominance has slipped from 64% to 60%, as ETH’s share of the total market cap climbs to 11.6%.

The momentum could accelerate further if the SEC approves staked spot ETH ETFs. Already, ETH spot ETF inflows have outpaced Bitcoin’s for two straight days, a strong signal of shifting institutional focus. This institutional interest has been highlighted by a significant rise in Ethereum's perpetual open interest, which surged from under $18 billion to over $28 billion in just one week. The recently signed GENIUS Act, which provides clearer regulations for stablecoins, has also renewed interest in Ethereum and other Layer 1 cryptocurrencies among corporate treasuries.

The anticipation of staked spot ETH ETF approvals is prompting further institutional rotation from Bitcoin to Ethereum. Ethereum's market share has risen to 11.6%, while Bitcoin's dominance has slipped, indicating a potential next leg for the altcoin season. This shift is supported by data showing that 75% of altcoins are currently testing key resistance levels, a technical point where altcoin seasons either begin or fail. In strong altseasons, Bitcoin loses relative strength, its dominance drops, and altcoins break out broadly across the market.

The market is at a critical decision point, with early signs of capital rotation into altcoins beginning. If capital flow accelerates further, the conditions for a potential strong altseason could be forming. This is characterized by Bitcoin's momentum slowing and altcoins gaining strength, which could lead to a broader market rally. The surge in Ethereum's price has also lifted other altcoins, such as CFX, PENGU, and ENA, as market trends point towards an altcoin season. This momentum is supported by continued investor confidence, despite relatively low gas fees across the Ethereum network. Funding rates have moved into double digits, although they remain modest relative to the broader scale of futures positioning and Ethereum ETF inflows.

Asia has been a significant driver of Ethereum's recent gains, with data tracking ETH's performance across trading sessions showing Asia's influence becoming more pronounced. This is responsible for the sharp weekend rally and is supported by an uptick in DeFi activity, which is providing much-needed support to Ethereum's upward momentum. The associated indexes have crossed above 50, the highest since December, further highlighting the potential for an altcoin season.