Ethereum News Today: Ethereum Surpasses Bitcoin in Q3 with 5x Higher Returns

Ethereum has surged ahead of Bitcoin in the third quarter of 2025, delivering returns nearly five times higher than BTC, according to recent market data. The asset has captured significant attention from both retail and institutional investors, with Ethereum perpetual futures volume dominance surpassing Bitcoin for the first time since the 2022 market low. This shift highlights growing conviction among leveraged traders who are increasingly allocating capital to ETH-based positions [1].

The outperformance is supported by robust inflows into Ethereum spot ETFs, which have drawn $10.53 billion in July 2025, compared to $6.74 billion for Bitcoin ETFs. This institutional tilt further reinforces Ethereum’s role as a key on-ramp for risk-on positioning in the digital asset space. On-chain data also shows Ethereum’s 7-day EMA of perpetual volume dominance climbing above 60.4%, while Bitcoin’s fell below 36%, marking one of the most significant divergences in over three years [1].

In addition to spot flows, derivatives markets have seen a clear rotation of directional liquidity into Ethereum. ETH perpetual open interest increased by over 600,000 ETH, compared to just 50,000 BTC, reflecting a 12x difference in inflows for the month. This trend is further validated by the ETH/BTC exchange rate, which climbed from 0.02 to 0.03 in July, meaning one Bitcoin now costs around 33.3 Ethereum [1]. This 50% relative gain signals strong conviction among traders that Ethereum is the preferred bet in the current market cycle.

However, Ethereum’s rally faces challenges. On July 29, the token briefly tested $3,930 before retreating to $3,700, where it found support and closed the day near $3,830. This volatility underscores the need for sustained buying pressure to maintain the upward momentum. Meanwhile, Ethereum-based ETPs, including BlackRock’s Ethereum ETF, have accumulated over 3 million ETH in holdings, further drawing capital away from Bitcoin [1].

The broader ecosystem is also showing signs of Ethereum’s growing influence. The NFT market, which has a current market cap of nearly $7 billion, has seen a surge in Ethereum-based activity, reinforcing the platform’s role as a foundational layer for new digital asset innovations [5]. This development could provide additional tailwinds for Ethereum adoption.

Despite these positives, the crypto market remains exposed to regulatory uncertainty. The recent White House crypto report, for example, has been criticized for omitting key details on a proposed Bitcoin reserve plan, raising concerns about potential policy shifts that could impact market dynamics [1]. While Ethereum has outperformed Bitcoin in Q3, the sustainability of this rally will depend on continued institutional demand, technological upgrades, and regulatory clarity.

Overall, the data points to a structural shift in market positioning toward Ethereum. With strong ETF inflows, rising derivatives activity, and growing institutional confidence, Ethereum appears well-positioned for continued outperformance in the near term. Whether this momentum lasts will depend on broader macroeconomic factors and the platform’s ability to maintain its innovation edge.

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Source:

[1] VanEck Mid-July 2025 Bitcoin ChainCheck (https://seekingalpha.com/article/4806030-vaneck-mid-july-2025-bitcoin-chaincheck)

[2] Bitcoin News Today: Regulatory Clarity, Surging Liquidity... (https://www.ainvest.com/news/bitcoin-news-today-regulatory-clarity-surging-liquidity-fuel-altcoin-demand-6-drop-bitcoin-dominance-2507/)

[3] Ethereum continues attempt to climb above $4.000 (https://www.fxstreet.com/cryptocurrencies/news/ethereum-continues-attempt-to-climb-above-4000-202507290853)

[4] BTC investors turn to APT miners after GENIUS Act (https://coincentral.com/btc-investors-turn-to-apt-miners-after-genius-act-earning-up-to-3000-a-day/)

[5] NFTs market cap nears $7 billion as Ethereum-based... (https://www.mitrade.com/au/insights/news/live-news/article-3-997176-20250730)