Market Share Battle: Ethereum is directly challenging Bitcoin
July 21, 2025
I looked into the background of the Ethereum version of MicroStrategy. Currently, the largest purchaser of Ethereum is a US-listed company called SharpLink Gaming, which initially focused on basic services for sports events. Last year, it began a business restructuring, gradually shifting from traditional sports betting technology to blockchain asset allocation and Web3 strategy, and actively purchasing Ethereum as company assets. Currently, this company has acquired over 300,000 Ethereum, worth 1 billion, achieving several percentage points of profit. This profit has attracted other US companies to join the Ethereum allocation camp.
Driven by Ethereum's strength, mainstream altcoins are following suit. Why do mainstream coins rise when Ethereum goes up? Because in dex protocols like Uniswap, many LPs paired with ETH, such as UNI-ETH, will see their USDT valuations rise when ETH prices increase, although some of the gains may be erased by arbitrage. Furthermore, Ethereum's rise brings to mind the DeFi summer, creating expectations for a renewed prosperity of Ethereum chain applications. In reality, when Ethereum's price goes up, the activity of dapps has already begun to gradually increase. Not to mention, the trading volumes of Uni and Sushi have increased significantly.
Under Ethereum's strong offensive, Bitcoin's market share has begun to decline from the peak of 61.53% for the entire year of 2024. In fact, this market cap percentage is still very high. In my view, until this value drops below 50%, the market cannot be considered crazy. Looking back at historical data, it can be seen that during the most frenzied times in 2017 and 2021, Bitcoin's market share fell below 40%. This metric can also serve as a reference for our bull market exit strategy. If the market share returns to 40%, it will definitely be time to liquidate, though I feel it might be quite difficult. I will make my final retreat at 45%.
Looking at Ethereum's trend, it is still very strong, basically only a few points of small pullbacks before quickly rising again. Since many of the allocations by US companies were completed earlier, I view this market situation as not just simple buying by US companies, but very likely a major push by Ethereum's main players. If this is the case, breaking through the 4800-point high will not be difficult. Conversely, we can use this as a reference; if a true breakthrough occurs, then Ethereum's return expectations could further increase, and 8,000 to 10,000 might not be a fantasy.
