Altcoin Revolution: Ethereum-Led Rally Sees Bitcoin’s Dominance Crumble to 60%
The crypto market has witnessed a historic shift in dynamics, with altcoins, led by Ethereum’s explosive rally, taking the spotlight. Bitcoin’s dominance has crumbled to 60%, its lowest level since January, as capital rotates aggressively into ETH, Ripple (XRP), and even meme coins like Dogecoin (DOGE).
Ethereum’s Staggering 51% Monthly Gain
According to a Binance Research report, Ethereum led the charge with a staggering 51% monthly gain, fueled by a 127% surge in corporate treasury holdings and a record 19-day streak of net inflows into spot ETH ETFs. This development came amid a rare convergence of regulatory tailwinds, including the passage of the GENIUS Act for stablecoins, and a macroeconomic landscape that suddenly favored risk assets.
Corporate ETH Gold Rush
While spot ETH ETFs captured headlines with their record 19-day inflow streak, a quieter but equally significant trend emerged: corporations are accumulating Ethereum at an unprecedented pace. According to Binance Research, 24 new companies added ETH to their balance sheets in July, bringing total corporate holdings to 2.7 million ETH, a 127% monthly surge.
ETH’s Staking Yields and Deflationary Design
Companies are positioning around ETH’s staking yields and its deflationary design. Since the Merge, over 1.6 million ETH has been burned, and during periods of high network activity, issuance has consistently turned negative, making Ethereum one of the few yield-bearing, deflationary assets in digital markets.
Altcoin Rally Extends Beyond Ethereum
The altcoin rally extended far beyond Ethereum. XRP briefly notched new yearly highs before profit-taking set in, while SUI’s 34.6% surge coincided with its DeFi ecosystem hitting $2.2B in TVL, a milestone that attracted corporate treasury plans. Even meme coins joined the party, with DOGE rallying 30% after a treasury firm disclosed allocations.
Growing Belief in Regulatory Clarity and Ethereum’s Staking Economy
This broad-based altcoin strength reflects more than speculative fervor. It signals a growing belief that regulatory clarity and Ethereum’s staking economy have fundamentally altered the risk-reward calculus. The market’s risk appetite appears to be undergoing its most dramatic pivot this year.
Tokenized Stocks Mirror Ethereum’s Early Growth
An unexpected corner of crypto mirrored Ethereum’s early growth: tokenized stocks. Excluding niche offerings like Exodus shares, the market cap for blue-chip tokenized equities exploded 220% to $53.6 million in July. According to Binance researchers, on-chain addresses interacting with these assets ballooned from 1,600 to 90,000, a DeFi Summer-esque surge in participation.
Growing Appetite for Hybrid Finance Models
While still niche compared to traditional equities, the activity suggests a growing appetite for hybrid finance models, especially as projects like xStakes leverage Solana’s speed for European markets. As the crypto market continues to evolve, it will be interesting to see how this trend develops and what implications it may have for the future of finance.
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