Bitcoin recently achieved a new all-time high, peaking at $112,000. Many assumed this would further solidify its dominance in the cryptocurrency market. However, new data from OKX reveals a surprising shift in investor behavior: Ethereum has now overtaken Bitcoin in spot market trading on the platform.
Lennix Lai, Global Chief Commercial Officer at OKX, interprets this flip not as a fluke but a reflection of growing sophistication in crypto markets. He explains, “Ethereum offers a fundamentally different investment case—staking yields, a Fusaka upgrade on the horizon, and crucially, its role in real-world asset tokenization. The volume flip we’ve seen shows traders recognize the distinction: Bitcoin works brilliantly as digital gold, but Ethereum’s programmability is increasingly valued on its own merits.”
Strategic Rotation or a New Norm?
This change comes amid a sharp increase in trading activity overall. OKX reported a 60% week-over-week surge in spot trading volume during the second week of May, followed by a further 6% climb the week after. The dual rally in BTC and ETH prices suggests that rather than capital rotating out of Bitcoin and into Ethereum, market participants are diversifying their positions across both.
April’s market painted a different picture. Bitcoin then accounted for 38% of spot volume, with Ethereum lagging below 20%. The reversal in May is striking not only for the numbers but for what they signal—a potential decoupling of investor focus from a Bitcoin-centric view to a more balanced outlook on crypto assets.
“This shift looks more strategic than tactical,” says Lai. “Over the past month, derivatives volume surged 21.4% while spot trading rose 14.6%—showing sophisticated positioning, not short-term trades. I expect Bitcoin’s dominance to remain strong, especially given the Moody’s downgrade pushing more capital toward non-sovereign assets. But institutional players are clearly developing parallel theses for both assets.”
Ethereum’s Expanding Use Case
While Bitcoin’s macro narrative as a hedge against fiat devaluation remains intact, Ethereum’s role is expanding. Major financial institutions are actively building Layer 2 solutions on Ethereum to facilitate the tokenization of RWAs—a market that, according to Economist Impact research cited by OKX, could exceed $10 trillion by 2030.
“TradFi building Ethereum L2s for RWA tokenization transforms ETH’s value proposition,” Lai continues. “Ethereum is becoming the settlement layer for potentially trillions in traditional assets. Its utility extends beyond market cycles. Financial institutions are choosing to build on Ethereum instead of creating competing chains. ETH is cementing its position as critical financial infrastructure.”
The implications of this evolution are far-reaching. It challenges the long-standing view of cryptocurrencies as speculative instruments and reframes them as foundational components of next-gen finance. Ethereum’s programmability and adaptability make it uniquely suited to handle this transition, while Bitcoin’s immutable and deflationary nature continues to attract those wary of inflation and sovereign risk.
A Dual-Core Financial Framework
Another factor contributing to Ethereum’s recent surge is the growing clarity around U.S. regulatory treatment. The advancement of the GENIUS Act in the Senate effectively recognizes Ethereum’s role as a settlement layer for stablecoins, providing much-needed confidence to institutional players who previously hesitated due to regulatory uncertainty.
“The ‘Bitcoin or nothing’ days are over,” Lai asserts. “ETH, being the top traded asset on our platform over the past month, shows traders are developing strategies based on fundamentals, not momentum. With the GENIUS Act advancing, ETH essentially becomes the settlement layer for stablecoins, which now has regulatory approval. Bitcoin and Ethereum are solving different problems—Bitcoin’s growing decoupling from equity markets highlights its role as a non-sovereign store of value, while Ethereum establishes itself as programmable infrastructure.”
This nuanced understanding is becoming more common among investors, particularly institutional ones. The crypto market of 2025 is no longer a monolith but a multifaceted ecosystem where digital assets are evaluated on their individual merits and use cases. This is evident in the split between BTC and ETH spot trading, which appears to be less a matter of choosing sides and more about diversifying exposure based on evolving investment theses.
It’s tempting to frame Ethereum’s rise in volume as the beginning of an “altcoin season,” but that would be a mischaracterization. Unlike previous cycles marked by speculative fervor, this time appears more rooted in fundamentals. As Lai puts it, “This isn’t your typical ‘alt season’—it’s market maturation. ETH volume is surging while Bitcoin hits new highs—they’re not cannibalizing each other. Investors are developing conviction around specific technologies rather than rotating capital for short-term gains.”
The Moody’s downgrade of U.S. creditworthiness has added fuel to the fire. It has strengthened the case for Bitcoin as a sovereign-free asset and simultaneously opened the door for Ethereum to gain traction as a more adaptable and functional blockchain ecosystem. Together, these developments point toward a more diversified and resilient crypto market.
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