The value of Bitcoin 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 at the beginnings of what is known as the altcoin season, where other cryptocurrencies outperform Bitcoin in performance and returns.
During most previous bull runs, Ethereum's performance lagged behind Bitcoin, but the situation has begun to change.
The price ratio of Ethereum to Bitcoin increased from 0.018 to 0.031, the highest level since last January.
This shift is attributed to the decline of the market value to realized value (MVRV) index of Ethereum compared to Bitcoin to extremely low levels in April, before starting to recover, thus 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 the institutional investment side, the inflow of capital into U.S. exchange-traded Ethereum funds is increasing at a faster pace than Bitcoin funds.
The share 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 trading flow rate between Ethereum and Bitcoin, an indicator of selling pressure, dropped to its lowest level since 2020, before rising again without reaching its previous levels.
This relative decline in selling pressure on Ethereum reinforces the expectations that it will continue to outperform Bitcoin in the coming period.
