Between July 14 and 20, Ethereum 
$2,003 outperformed Bitcoin 
$68,464 in the spot market for the first time in over a year, with a trading volume reaching $25.7 billion, surpassing Bitcoin’s $24.4 billion. During this period, the price of ETH surged by more than 26%, while BTC saw a decline of 1.55%. This unexpected shift in dominance has sparked discussions about whether an “altcoin season” is beginning, as analysts are currently favoring Ethereum.
Weekly Volume Data Highlights Leadership Shift
Data provided by CryptoRank highlights the clear market rotation. Over the seven-day span, Ethereum’s spot volume overtook Bitcoin’s by a substantial $1.3 billion, cementing its position as a key market driver. This growth was propelled by a 26% price increase, supported by six consecutive green candles. In contrast, Bitcoin experienced low volatility and a 1.55% loss, causing investors to shift their attention to the largest smart contract ecosystem.
The rise in interest is not confined to spot trading alone. On July 22, open positions in the Ethereum futures market hit a record $28 billion. However, the next day witnessed a liquidation of $150 million, with $111 million of that in long positions. This indicates that while there’s enthusiasm for short-term profits, a cautious approach remains.
ETF Flows and Reserve Declines Attract Attention
ETF flows also strengthened in favor of Ethereum. Between July 14 and 18, spot Ethereum ETFs saw an influx of $2.18 billion, followed by an additional $1.39 billion from July 21 onward. A single-day inflow of $231.2 million reinforced confidence. Bitcoin ETFs, despite achieving $2.37 billion in inflows in the first five days, saw over $285 million withdrawals from July 21 to 23, losing their strong momentum.
According to CryptoQuant, ETH reserves on centralized exchanges decreased by 3.46% during the same period, dropping from 20 million to 19.32 million units. This indicates that investors moving cryptocurrencies to cold wallets may alleviate selling pressure. However, the Altcoin Season Index declining from 62 to 48 suggests that the rally isn’t spreading throughout the crypto market, and a broad-based altcoin rally is yet to be confirmed.
