Ethereum News Today: Ethereum Outperforms Bitcoin by 72% as Altcoin Capital Flows Surge

Generated by AI AgentCoin World
Sunday, Jul 27, 2025 5:51 am ET1min read
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ETH
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Aime RobotAime Summary

- CryptoQuant identifies capital shifting to ETH and altcoins as BTC underperforms, with ETH/BTC ratio surging to 0.031—the highest since January 24.

- ETH’s weekly trading volume surpassed BTC’s for the first time in over a year, while altcoin volume hit $67B, signaling renewed investor interest.

- U.S. ETH ETF inflows outpaced BTC’s, and ETH’s exchange inflow ratio remains near 2020 lows, suggesting reduced selling pressure and bullish momentum.

- Analysts warn that ETH’s MVRV ratio surpassing its 365-day average could intensify outperformance, potentially triggering an "altseason" if macroeconomic conditions align.

The cryptocurrency market is showing early signs of a shift in investor sentiment, with capital increasingly flowing into

Ethereum
(ETH) and altcoins while
Bitcoin
(BTC) appears to be taking a backseat. According to a recent analysis by CryptoQuant, the relative performance of ETH against BTC has improved significantly, reflecting a broader trend of asset rotation within the crypto ecosystem. The firm notes that a continuation of this trend could culminate in a full-fledged "altseason," where altcoins experience substantial gains alongside ETH outperforming BTC.

The ETH/BTC price ratio has surged from 0.018 to 0.031, reaching its highest level since January 24[1]. This shift marks a reversal from the majority of the current bull cycle, during which ETH had underperformed BTC. The recovery of ETH’s value is attributed to the ETH/BTC Market Value to Realized Value (MVRV) ratio dropping into "extremely undervalued" territory in April, a threshold that has historically acted as a resistance since early 2023. ETH’s subsequent 72% outperformance over BTC suggests growing confidence in the asset. CryptoQuant analysts further note that if ETH’s MVRV ratio surpasses its 365-day moving average, the outperformance could intensify[1].

Trading volume metrics underscore this trend. For the first time in over a year, ETH’s weekly spot trading volume surpassed BTC’s, reaching $25.7 billion compared to BTC’s $24.4 billion[1]. This marks the first such occurrence since June 2024 and indicates that the ETH/BTC trading ratio is currently above 1. The broader altcoin market has also seen a surge in activity, with total trading volume hitting $67 billion on July 17—the highest level since March. This aligns with renewed investor interest in altcoins, a pattern often observed during market cycles driven by Ethereum upgrades or institutional adoption.

Ethereum’s relative strength is further evident in its ETF allocations and selling pressure metrics. U.S. spot Ethereum ETF inflows have outpaced their Bitcoin counterparts, with the ETH/BTC ETF Holding Ratio rising from 0.05 to 0.12[1]. Meanwhile, the ETH/BTC exchange inflow ratio, a proxy for selling pressure, hit its lowest level since 2020 in May. Although the ratio has risen slightly since then, it remains far from "extremely high" levels, which analysts view as a bullish signal for ETH’s continued dominance over BTC[1].

The market dynamics highlight a strategic shift in investor priorities, with Ethereum and altcoins capturing attention as Bitcoin consolidates. While BTC remains the largest cryptocurrency by market capitalization, its relative underperformance and reduced selling pressure in ETH suggest a temporary reallocation of capital. CryptoQuant’s analysis frames this as a potential precursor to an altseason, though the outcome will depend on broader market conditions, including macroeconomic factors and regulatory developments.

Source: [1] [Bitcoin Takes a Backseat as Investors Rotate Capital to ETH and Altcoins: CryptoQuant] [https://coinmarketcap.com/community/articles/6885f3eb3d75d403356304a9/]