Ethereum News Today: Ethereum Surpasses Bitcoin as Capital Flows to Altcoins

Ethereum’s native token, ether (ETH), has reached a historic milestone, surpassing its previous all-time high of $4,878.26 set in November 2021. As of the latest market data, ETH briefly traded above $4,880 before consolidating at around $4,872, marking a gain of more than 15% in a single day. The broader crypto market has also benefited from this rally, with ether outperforming even bitcoin in 2025, rising over 40% year-to-date [1].

The surge in ETH has been driven by several key factors, including growing institutional adoption and regulatory developments. The approval of Ethereum-based spot exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) in July 2024 has catalyzed a significant inflow of capital. These ETFs, led by BlackRock’s ETHA, now hold over $20 billion in assets under management. Additionally, corporate entities have been aggressively accumulating ether, with companies like BitMine, Sharplink Gaming, and others holding over $10 billion worth of ETH in corporate treasuries [1].

The shift in market dynamics is further underscored by the declining dominance of bitcoin. For the first time since March 2025, Bitcoin’s share of the total crypto market capitalization has dipped below 60%. This decline is attributed to a capital rotation into alternative cryptocurrencies, particularly large-caps like Ethereum. Ether-focused investment products have attracted nearly $2.96 billion in month-to-date inflows, outpacing Bitcoin’s inflows, which recorded only $21 million [2].

Analysts suggest that Ethereum’s appeal is rooted in its evolving utility and expanding role in the financial ecosystem. Joe Lubin, founder of Consensys, emphasized that Ethereum underpins the infrastructure of future financial systems and supports a wide array of use cases, including transactions between humans and AI agents. The recent Pectra upgrade further enhanced Ethereum’s scalability and efficiency, contributing to the momentum in the market [1].

Despite Ethereum’s robust performance, other major altcoins like Cardano (ADA) and XRP have shown mixed results. ADA has experienced a six-month gain of 14.81%, but its short-term performance remains volatile, with recent declines pushing it below the 100-day moving average. XRP, meanwhile, has faced a 10.35% weekly drop, though it has gained 14.08% year-to-date. Whale activity, however, remains strong in both markets, with large holders continuing to accumulate significant volumes of ADA and XRP [8].

Looking ahead, the competitive landscape among altcoins remains dynamic. While Ethereum continues to attract institutional attention and regulatory clarity, projects like Cardano and XRP are navigating their own paths, supported by legal resolutions and growing network adoption. The broader altcoin market is expected to remain in a bullish phase as investors seek higher returns beyond Bitcoin’s dominance [7].

Source:

[1] Ethereum hits fresh all-time high amid wider market rally ... (https://www.theblock.co/post/366657/shell-dnp-ethereum-hits-new-all-time-high-price-as-eth-crosses-4900-for-the-first-time-ever)

[2] ETH Soars To New All-time High On Fed Rate Cut Signal (https://cointelegraph.com/news/eth-hits-new-highs-as-fed-turns-dovish-ether-etf-inflows-resume)

[3] Ethereum (ETH) Surges to New All-Time High Amid Likely ... (https://www.coindesk.com/markets/2025/08/22/ethereum-surges-to-new-all-time-high-amid-likely-september-rate-cut)

[4] XRP vs. ADA vs. ETH: We Asked 4 AIs Which Is the Most ... (https://cryptopotato.com/xrp-vs-ada-vs-eth-we-asked-4-ais-which-is-the-most-popular-altcoin-answer-is-surprising/)

[5] Cardano vs XRP: Which Hits $5 First in 2025? (https://crypto-economy.com/cardano-ada-vs-xrp-which-altcoin-reaches-5-first-as-fomo-builds-into-2025/)

[6] Cardano and XRP Whale Activity Hits Multi-Month High ... (https://finance.yahoo.com/news/cardano-xrp-whale-activity-hits-160753452.html)