Bitcoin News Today: Ethereum Liquidity Surges on $14.7 Billion Inflows as Bitcoin Dominance Falls Below 60%

Ethereum’s liquidity has surged in August 2025, driven by significant institutional inflows into the network, with data indicating $14.7 billion in capital has entered Ethereum-related assets. This increased institutional interest has led to higher trading volumes and a stronger market presence for the second-largest cryptocurrency [1]. The trend comes as Bitcoin’s dominance—historically a key metric for gauging market concentration—has dropped below 60%, down from a peak of 66% in June 2025. This decline signals a broader redistribution of capital across the crypto market, with investors shifting toward altcoins that offer strong fundamentals and use cases, such as smart contracts and decentralized finance (DeFi) platforms [2].

Ethereum, in particular, has benefited from this shift. Institutional buying activity, coupled with the expansion of Ethereum-related exchange-traded funds (ETFs), has contributed to increased price momentum and liquidity [3]. With Ethereum’s price approaching $15,000, the network is attracting more demand from investors looking to access decentralized infrastructure and financial services. Analysts have highlighted pro-crypto regulatory developments and the broader adoption of Ethereum-based applications as key drivers of this trend [4].

While Bitcoin has reached a new all-time high above $124,000, the recent decline in its dominance suggests that altcoin activity is accelerating. Some market observers have drawn comparisons to the 2021 trend, where Bitcoin dominance fell from around 70% to 40%, coinciding with a strong performance in altcoins [5]. A sustained drop in Bitcoin’s dominance may reinforce altcoin performance, though it does not necessarily indicate a bearish outlook for Bitcoin, as the asset remains resilient amid evolving monetary policy and inflationary pressures [6].

The broader market is also being influenced by macroeconomic factors, including U.S. inflation data and central bank policy uncertainty, which have increased volatility in crypto markets. Despite these headwinds, liquidity in the crypto ecosystem is recovering, supported by rising trading volumes and stablecoin flows [7]. Investors are closely watching Ethereum’s liquidity trends and Bitcoin dominance as key indicators of market sentiment and capital reallocation.

As the market continues to evolve, Ethereum appears well-positioned to benefit from ongoing institutional adoption and the reallocation of capital from Bitcoin to alternative cryptocurrencies. This shift could signal the early stages of an altcoin season, where investors look to diversify their holdings beyond Bitcoin in search of higher returns and innovation-driven opportunities.

Sources:

[1] https://en.coinotag.com/ethereum-liquidity-increases-amid-institutional-inflows-as-bitcoin-dominance-declines/

[2] https://www.ainvest.com/news/ethereum-news-today-multiple-signs-signal-altcoin-season-ethereum-gains-3b-etf-inflows-bitcoin-dominance-drops-59-2508/

[3] https://medium.datadriveninvestor.com/crypto-chaos-how-the-putin-trump-summit-is-rocking-global-markets-altcoin-trends-and-why-2c1107be1ca7

[4] https://blockchain.news/flashnews/btc-dominance-breakdown-how-to-time-altcoin-buys-on-btc-d-bounces-in-2025

[5] https://coincentral.com/5-factors-driving-ethereum-price-toward-a-possible-15k-milestone/

[6] https://www.aol.com/bitcoin-soars-past-124k-time-101500943.html

[7] https://www.coindesk.com/daybook-us/2025/08/15/bitcoin-rally-stalls-on-u-s-inflation-policy-whiplash-crypto-daybook-americas