Bitcoin's value has recently declined amid a clear shift in investor interest towards Ethereum and alternative currencies, according to a recent report from 'CryptoQuant'.
This shift indicates that the market may be in the early stages of what is known as an altcoin season, where other cryptocurrencies outperform Bitcoin in performance and returns.
During most previous upward trends, the performance of Ethereum lagged behind that of Bitcoin, but the situation has begun to change.
The ratio of Ethereum's price against Bitcoin has risen from 0.018 to 0.031, the highest level since last January.
This shift is attributed to the decline in the Market Value to Realized Value (MVRV) ratio of Ethereum against Bitcoin to very low levels in April, before it began to recover, outperforming Bitcoin by 72%.
Data also showed that the spot trading volume of Ethereum surpassed that of Bitcoin for the first time in over a year, reaching $25.7 billion compared to $24.4 billion for Bitcoin last week.
The total trading volume of alternative currencies rose to $67 billion on July 17, the highest level since March, reflecting increased interest in these assets by investors.
In terms of institutional investment, the inflow of capital into Ethereum exchange-traded funds in the U.S. is increasing at a faster pace than that of Bitcoin funds.
The percentage of holdings in these funds rose from 0.05 to 0.12, indicating an increasing preference for Ethereum in investors' portfolios.
On the other hand, the rate of trading flows between Ethereum and Bitcoin, an indicator of selling pressure, has dropped to its lowest level since 2020, before rising again without reaching previous levels.
This relative decline in selling pressure on Ethereum strengthens the expectations of its continued outperformance over Bitcoin in the coming period.