Ethereum News Today: Ethereum's 55% Surge and Solana's 29.6% Rise Drive Altcoin Momentum, Bitcoin's Dominance Dips to 60.1%

Ethereum and Solana have ignited a surge in altcoin enthusiasm, with on-chain data and capital flows suggesting a market shift away from Bitcoin dominance. Ethereum (ETH) has surged over 55% in early July, peaking at $3,857 after climbing from $2,474, while Solana (SOL) rose 29.6% to $204.6. Institutional whale activity, including $2.6 billion in ETH purchases, and record ETF inflows—$297 million into ETH spot ETFs on July 21—highlight growing confidence in layer-1 blockchains [1].

The Altcoin Season Index, a metric tracking altcoin performance relative to Bitcoin, reached 50, indicating that 50 of the top 100 cryptocurrencies outperformed Bitcoin over 90 days. Bitcoin’s market dominance has fallen to 60.1%, the lowest since March, as capital rotates into altcoins like Ethereum and Solana [1]. Analysts note that Ethereum’s upgrades and Solana’s scalability are attracting developers and users, with Solana’s high throughput and low fees bolstering its ecosystem [1].

On-chain metrics reinforce this trend. Ethereum’s gas fees and transaction volumes have risen, reflecting increased usage in DeFi and cross-chain bridges. Meanwhile, Solana’s network activity, including staking participation and wallet growth, signals sustained demand. Projects such as Ani Grok Companion ($ANI) and Elixir ($ELX) have surged by 137% and 115%, respectively, on HTX, while Solana’s ecosystem tokens like RAY and JUP climbed over 20% in a day [1].

Market observers like Chloe @ChloeTalk1 and HTX Research highlight Bitcoin’s breakout as a catalyst for altcoin activity, driven by macroeconomic factors including Japan’s bond yields and bullish options structures. Contract whale James Wynn forecasts Bitcoin could peak at $145,000 by late July before a correction, followed by a “true altcoin bull market” in the next 1–2 months if the Federal Reserve cuts rates in Q4 [1].

However, analysts caution that macroeconomic uncertainties and regulatory shifts could impact altcoin sustainability. While Ethereum and Solana lead innovation, long-term success depends on broader adoption and institutional adoption of crypto reserves, as seen in the potential approval of a staked ETH ETF [1].

Source:

[1] [Ethereum Sparks the Rally, Solana Takes the Baton](https://coinmarketcap.com/community/articles/68835c6fd9d19935252ecd99/)

[2] [Ethereum Sparks the Rally, Solana Takes the Baton](https://techbullion.com/ethereum-sparks-the-rally-solana-takes-the-baton-is-altcoin-season-here/)