Bitcoin News Today: Ethereum Dominance Surges 11.6% as Bitcoin ETF Inflows Plunge 80%

The cryptocurrency market is undergoing a significant realignment as Bitcoin and Ethereum consolidate their dominance, reshaping altcoin dynamics. Institutional capital continues to concentrate on Bitcoin’s potential for record highs and Ethereum’s ecosystem advancements, while Solana’s rapid token issuance growth highlights shifting speculative interest. Market saturation has limited broader altcoin rallies, with investors opting for short-term, high-liquidity trades over sustained long-term positions.

In late July 2025, Bitcoin’s market share stabilized above 60%, signaling a potential shift in capital flows toward altcoins [1]. However, Ethereum’s dominance rose to 11.6% from 9.7% in recent weeks, driven by institutional inflows and Layer 2 innovations. Ethereum attracted $1.9 billion in weekly crypto inflows, outpacing Bitcoin as ETF fatigue reduced Bitcoin’s inflows by 80% [2]. This divergence reflects growing confidence in Ethereum’s infrastructure, including scaling solutions that benefit projects like Optimism (OP) and Celestia (TIA).

Solana’s network has become a focal point for speculative activity, with over 70% of new token launches occurring on its platform. The chain’s infrastructure enhancements have bolstered total token dominance, attracting investors seeking short-term gains. Paul Howard, a fund manager at FS Insight, emphasized Bitcoin’s potential to surpass $110,000 by year-end, reflecting continued institutional bullishness despite broader altcoin volatility [3].

Market analysts caution against complacency. Bitcoin’s dominance chart has shown bearish divergence—a historical precursor to market reversals—raising concerns about potential "severe corrections" in altcoins [1]. Ethereum’s retesting of key resistance levels suggests near-term upside, but the sector remains vulnerable to sharp reversals if Bitcoin breaks below its current range. Projects like Rocket Pool (RPL) and Wormhole (W) exhibit mixed signals, underscoring the sector’s sensitivity to macroeconomic shifts.

The saturated altcoin landscape has constrained extended rallies, with opportunities emerging in low-liquidity microcaps through brief speculative bursts. Over 37 million tokens in circulation have diluted the potential for broad-based altseason growth, a trend analysts attribute to fragmented investor attention and capital concentration in major assets. While Solana’s token launches draw activity, Ethereum’s dominance in new project adoption has waned as developers pivot to its scalable infrastructure [2].

Investors are advised to adopt disciplined strategies amid diverging flow patterns. Ethereum’s trajectory depends on real-world adoption and innovation, while altcoin volatility necessitates rigorous risk management. Speculative narratives, such as DeSoc’s 300% token projections, remain unproven and could trigger sharp corrections if fundamentals fail to materialize [1]. The interplay between Bitcoin’s structural bullishness and Ethereum-driven altcoin momentum will likely define near-term market dynamics.

[1] [Analyst Warnings and Altcoin Corrections](https://coinedition.com/analyst-warns-altcoin-dip-watchlist-for-accumulation/)

[2] [SignalPlus Market Commentary](https://x.com/CryptoDeFiGuy/status/1949820043287474664)

[3] [Ethereum Outpaces Bitcoin](https://www.mitrade.com/insights/news/live-news/article-3-992750-20250729)

[4] [Bitcoin ETF Inflows Plunge](https://www.tradingnews.com/news/bitcoin-etf-inflows-collapse-80-percent)