Ethereum News Today: Ethereum Outperforms Bitcoin by 72% as Investors Shift to Altcoins, CryptoQuant Signals Altcoin Season

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

- Investors are shifting capital from Bitcoin to Ethereum and altcoins, signaling an emerging altcoin season per CryptoQuant.

- ETH/BTC relative price hit 0.031 (highest since Jan 24), with ETH's 72% outperformance driven by bullish MVRV ratios and record $25.7B weekly trading volume.

- Ethereum ETF inflows (ETH/BTC ratio 0.12) and 20-year low exchange inflow pressure reinforce ETH's institutional appeal over Bitcoin.

- Broader altcoin volume surged to $67B (March high), suggesting potential for full-scale altseason if ETH maintains 365-day moving average outperformance.

Investors are increasingly shifting capital from

Bitcoin
to
Ethereum
(ETH) and altcoins, signaling the emergence of an altcoin season. According to a recent CryptoQuant report, ETH has outperformed BTC, with the relative price of ETH to BTC rising to 0.031—the highest level since January 24 [1]. This trend marks a reversal from earlier in the bull cycle when ETH underperformed against BTC. The ETH/BTC Market Value to Realized Value (MVRV) ratio, which had previously acted as resistance since early 2023, has now entered a bullish phase, contributing to ETH’s 72% outperformance over BTC [1]. Analysts suggest that if ETH’s MVRV ratio surpasses its 365-day moving average, further gains relative to BTC are possible [1].

The shift is also evident in trading volumes. For the first time in over a year, ETH’s weekly spot trading volume ($25.7 billion) exceeded BTC’s ($24.4 billion) in the latest period. This marks the first such occurrence since June 2024, with the ETH/BTC trading ratio now above 1. Broader altcoin trading volume has surged to $67 billion, the highest level since March, indicating renewed investor interest in alternative cryptocurrencies [1].

Ethereum ETF allocations are another key driver. Spot Ethereum ETFs are attracting more capital than Bitcoin ETFs, as reflected in the ETH/BTC ETF Holding Ratio, which has climbed from 0.05 to 0.12. Additionally, the ETH/BTC exchange inflow ratio—the metric measuring selling pressure—hit a 20-year low in May, signaling reduced selling pressure for ETH compared to BTC. While the ratio has since increased, it remains far below levels considered bearish, reinforcing ETH’s potential to continue outpacing BTC [1].

The market dynamics highlight a strategic reallocation of capital within the crypto space. ETH’s outperformance is supported by technical indicators, institutional demand, and reduced selling pressure. If the trend persists, it could lead to a full-scale altseason, where altcoins experience significant gains as Bitcoin consolidates. Investors are advised to monitor ETH’s performance against the 365-day moving average and ETF inflows for further confirmation of the shift [1].

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