The dominance rate of Ethereum (ETH.D) reached 14.98% in August, marking the highest level since September 2024. This milestone coincides with ETH's price setting a new all-time high of $4,946 yesterday – a development seen as a significant milestone for the altcoin market.
Meanwhile, Bitcoin's dominance rate (BTC.D) continues to decline, reflecting a trend of capital movement. This increasing divergence has sparked bold forecasts from analysts, suggesting that the market may witness profound changes in the upcoming period.
Bitcoin compared to Ethereum: Capital rotation creates new waves
According to data from Bitcoin Magazine, Ethereum has outperformed Bitcoin in the past month. While BTC decreased by 5% in the last 30 days, ETH increased by as much as 23.4%.
The difference is also evident in the market dominance ratio: ETH.D has continuously increased since July and reached a yearly peak of 14.98%, before slightly adjusting to 14.54%. In contrast, BTC.D fell to 58.2%, the lowest level since January 2025.
This momentum indicates that the capital rotation trend is occurring strongly – a phenomenon often associated with the active phase of the altcoin cycle.
Whales and institutions accelerate ETH accumulation
A cryptocurrency analyst on X (Twitter) stated that since July, whale investors on Binance have continuously been buying ETH, both in the spot market and futures.
According to expert Darkfost:
"Whales often act after a positive trend has been confirmed. This strong accumulation is reinforcing the uptrend and may provide enough momentum to push ETH past the $5,000 mark."
At the same time, many old Bitcoin wallets are taking profits and converting to Ethereum, indicating that the trend of movement is not just coming from retail investors.
In particular, institutions are also spending billions of USD to buy back ETH, while the balance of Ethereum on exchanges has dropped to a record low of 18.3 million ETH. This is seen as a signal of a 'supply shock,' as investors choose to hold long-term rather than sell.
Analyst Ted Pillows emphasizes:
"The Ethereum supply shock is gradually being triggered."
The market enters a capital rotation phase
The current trend is not limited to Bitcoin and Ethereum. Some analysts believe that funds flowing from BTC to ETH may continue to flow into other altcoins, extending the overall market rally.
A user on X asserts:
"Every altcoin cycle starts the same way: Bitcoin gets tired, Ethereum explodes, and then the big rotation happens."
This implies that the market is entering a 'capital rotation' phase – a factor that often precedes stronger growth periods.
Next scenario: Can BTC make a comeback?
However, not all experts believe that Ethereum will maintain its leading position. Benjamin Cowen, CEO and founder of Into The Cryptoverse, predicts that after ETH peaks, Bitcoin may return to the race.
"The return of BTC could be triggered by a correction in September, after which the price will continue to recover strongly in October."
Although forecasts vary, the overall picture still leans towards a positive outlook. The biggest question right now is: will Ethereum continue to be the focal point of this cycle, or will capital soon return to Bitcoin and other altcoins?
Regardless, what is happening indicates that the market is entering a dynamic and unpredictable phase, where dominance no longer belongs to a single coin, but is a competition of capital rotation among leading assets.