Ethereum Gains Momentum Over Bitcoin Amid Supply Shortage

Ethereum is currently positioned for larger gains than Bitcoin, as indicated by a surge in the ETH/BTC ratio, rising institutional adoption, and significant on-chain supply reductions.

These factors highlight potential for Ethereum’s market strength, affecting crypto trading dynamics and emphasizing its positioning as a sustainable asset, despite key players’ silence on this divergence.

Ethereum/BTC Ratio Surges by 32.90% in 30 Days

Ethereum is experiencing unprecedented growth compared to Bitcoin. The ETH/BTC ratio increased by 32.90% over 30 days. This points to a developing market shift as institutional investors accumulate ETH in anticipation of further growth.

Significant withdrawals from exchanges indicate a deepening supply crunch, suggesting elevated demand. Analyst reports suggest that as more ETH moves into long-term storage, scarcity drives prices higher.

ETH/BTC ratio increased by 32.90% over the past 30 days, indicating Ethereum’s relative strength against Bitcoin. — Santiment, Analytics Platform

Institutional Holders Control 3.8% of Ethereum

Institutional interest has driven 3.8% of ETH’s supply into major stakeholders’ hands. This has resulted in robust market movements, becoming a primary focus for investment funds seeking yield-bearing assets. Institutional investors acquire 3.8% of the circulating supply, contrasting Bitcoin’s retail-driven rally.

The Ethereum upgrade to Proof-of-Stake attracts greater institutional participation, contrasting with Bitcoin’s predominantly retail-driven nature. This transition affects ETH and DeFi and Web3 wallets tied to its ecosystem.

Ethereum Post-Merge Drives Sector Shifts in 2025

Ethereum’s strengths in technology drive trends similar to those seen after the ETH Merge in 2022. Historical analysis reveals that Ethereum’s advancements often lead to notable sector shifts and market responses.

Future projections indicate that ETH’s price trends towards its all-time highs could fuel broader shifts in capital allocation among cryptocurrencies, emphasizing Ethereum’s growing footprint in digital asset portfolios.