Big Money Shifts: Why Ethereum and Altcoins Are Stealing Bitcoin’s Spotlight (CryptoQuant Report)

Bitcoin’s throne is wobbling. Fresh data reveals a seismic rotation into Ethereum and altcoins—traders are chasing higher beta while BTC dominance erodes. Here’s what’s fueling the flip.

The ETH factor: Smart contract platforms are eating Bitcoin’s lunch as DeFi activity spikes. No one’s HODLing when yield farms pay 20% APY—even if most collapse by Q3.

Altcoin arms race: From SOL to ADA, smaller caps are sucking liquidity like Wall Street vacuumed up retail homes. Remember when ‘diversification’ meant buying two shitcoins instead of one?

The report stops short of calling it a regime change—but when whales move, minnows better check the tide charts. Just don’t mention this to the Bitcoin maxis at the next crypto conference (they’re still waiting for that $100K price target).

Spot Volume and ETF Trends Reflect Investor Rotation

Trading volumes show a change in market sentiment. For the first time since June 2024, Ethereum’s weekly spot volume surpassed Bitcoin’s, with ETH reaching $25.7 billion versus Bitcoin’s $24.4 billion.

First time in over a year: ETH spot volume > BTC

Last week, ETH spot trading hit $25.7B vs. BTC’s $24.4B, pushing the ETH/BTC spot volume ratio above 1 for the first time since June 2024.

Investors are rotating to ETH and Altcoins. pic.twitter.com/X7mBFVCg5Y

This reversal suggests a rising appetite for ETH among traders. Additionally, ETF data reinforce this pattern. The ETH/BTC ETF Holding Ratio has more than doubled, moving from 0.05 to 0.12, indicating that funds are allocating more capital to Ethereum than to Bitcoin.

Altcoin Market Sees Renewed Momentum

It’s not just Ethereum that’s benefiting. The broader altcoin market is showing renewed strength, with spot trading volume reaching $67 billion on July 17—the highest level since March. This surge suggests that investor interest is broadening beyond the two dominant cryptocurrencies, reports CryptoQuant.

Traders appear to be diversifying their portfolios, taking positions in assets they perceive as undervalued or primed for growth during the next leg of the crypto market cycle. The combined factors of Ethereum’s price surge, reduced exchange inflows, and growing ETF demand indicate a market shift that may continue to favor altcoins in the near term.