Ethereum has emerged as the standout performer in the cryptocurrency market over the past 90 days, with gains of approximately 75% compared to Bitcoin’s more modest 33% increase. This dramatic shift marks a significant turning point in the long-standing dominance of Bitcoin and signals the beginning of what many analysts believe could be a new era of altcoin leadership.
The Numbers Tell the Story
As of July 13, 2025, Ethereum is trading at approximately $2,945 , while Bitcoin sits at around $117,571 . This represents a remarkable transformation from just three months ago when Ethereum was languishing around $1,400-$1,450 in April 2025, having hit what many considered to be multi-year lows against Bitcoin . During the same period, Bitcoin has shown steady but more measured growth from the $82,000-$88,000 range.
The magnitude of Ethereum’s outperformance becomes even more striking when viewed through the lens of historical context. Ethereum has only outperformed Bitcoin for 15% of all trading days since its launch almost a decade ago , making the current surge particularly noteworthy for investors and market observers.
Breaking the Chains of Underperformance
For much of 2025’s first quarter, Ethereum faced significant headwinds. Ethereum’s price slumped 37.98% in Q1 2025, marking its most disappointing opening quarter since 2018 , while Bitcoin’s decline was more contained at 6.49% . The ETH/BTC ratio had fallen to multi-year lows around 0.018 in April , representing what many analysts viewed as an extreme oversold condition.
However, the tide began to turn in late spring. Since the bottom in April 2025, ETH has rebounded 34% versus BTC , with the momentum accelerating dramatically through the summer months. Ethereum surged to its highest price in over four months, nearing $3,000 as Bitcoin reached new record highs .
Fundamental Drivers Behind Ethereum’s Renaissance
Institutional Adoption and ETF Inflows
One of the most significant catalysts for Ethereum’s recent performance has been the resurgence of institutional interest. US-listed spot ETFs saw strong demand, booking over $500 million in inflows month-to-date as of July 10, 2025. This represents a dramatic reversal from earlier in the year when Ethereum ETFs experienced a seventeen-day streak of outflows .
The corporate treasury strategy has also evolved beyond Bitcoin. Public firms such as Sharplink Gaming and Bitmine Immersion Technology have begun adding ETH to their balance sheets , suggesting a broader institutional recognition of Ethereum’s value proposition beyond Bitcoin’s store-of-value narrative.
DeFi Ecosystem Expansion
Ethereum’s dominance in decentralized finance continues to be a major growth driver. Total value locked (TVL) in DeFi on Ethereum has grown by 30% in 2025, reaching approximately $62.59 billion , representing over 53% of the global DeFi TVL . Leading protocols such as Lido, Aave, EigenLayer, EtherFi, and Sky (formerly MakerDAO) are transforming decentralized finance and attracting both individual and institutional users .
The broader DeFi sector has shown remarkable resilience and growth. DeFi activity surged by 532% in 2024, with 7 million daily unique active wallets , and this momentum has continued into 2025. DeFi’s total value locked rose 211% to end 2024 at $214 billion , setting the stage for continued expansion.
Layer 2 Solutions and Scalability Improvements
Ethereum’s transition to a Layer 2-centric scaling model has been crucial to its recent success. Layer 2 transactions have grown by an astonishing 90 times since 2021 , with networks like Arbitrum and Optimism leading the charge . These solutions have successfully addressed many of Ethereum’s scalability concerns while maintaining the security of the base layer.
The Pectra upgrade, which went live in early May 2025 , has been particularly impactful. This major network upgrade promises to make Ethereum faster, cheaper, and easier to use , addressing longstanding concerns about transaction costs and user experience. The completion of Ethereum’s long-awaited Pectra upgrade has been the most important driver of ether’s recent strength .
Technical and Network Improvements
Recent data shows that Ethereum’s supply on exchanges has plunged from over 10.5 million coins to 7.45 million , indicating that investors are not selling their coins and suggesting strong underlying demand. Additionally, the market value to realized value (MVRV) stands at 0.0014, up from last month’s low of minus 0.34 , though it remains significantly lower than historical highs, making ETH more attractive to value-oriented investors.
Market Dynamics and Future Outlook
Changing Correlation Patterns
The relationship between Bitcoin and Ethereum has evolved significantly. The correlation coefficient between BTC and ETH, usually above 0.90, now sits at 0.41 , indicating that the two assets are increasingly moving independently. This falling correlation may stem from investors seeing BTC’s outperformance and ETH’s underperformance as overdone .
Analyst Predictions and Market Sentiment
Market analysts are increasingly bullish on Ethereum’s prospects. Steno Research predicts that Ethereum will outperform Bitcoin in 2025, with ETH potentially reaching at least $8,000 from current levels around $3,400 . Compass Point Research believes that Ethereum is set to have a bounce-back year in 2025, driven by eased regulations and increased clarity around smart contracts and decentralized computing platforms .
Several factors support these optimistic projections:
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The potential introduction of new cryptocurrency exchange-traded funds (ETFs) in the US
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Anticipated institutional adoption of crypto on an unprecedented scale
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Growing enthusiasm around Ethereum’s broader role in settlement and tokenization infrastructure
Technical Analysis and Price Targets
From a technical perspective, Ethereum has shown strong momentum indicators. ETH has broken above its upper Bollinger Band near $2,900, signaling a strong bullish breakout . With RSI at 72.74, ETH is in overbought territory, indicating intense buying pressure . Technical analysts suggest that if bullish sentiment persists, Ethereum could test the $3,150–$3,300 range by late July 2025 .
More ambitious targets include projections of $4,287 based on bullish flag pattern measurements , with some analysts even suggesting ETH could surge to $8,000 by 2025 .
Regulatory and Ecosystem Developments
Favorable Regulatory Environment
The regulatory landscape has become increasingly favorable for Ethereum. The Trump administration is showing strong support for the crypto space, nominating pro-crypto figures to top regulatory roles at the SEC and CFTC . This regulatory clarity is particularly beneficial for Ethereum given its more complex ecosystem compared to Bitcoin’s simpler value transfer model.
Innovation and Development
Ethereum’s development roadmap continues to attract attention. Vitalik Buterin’s roadmap updates include the solidification of single slot finality (SSF) in post-Merge proof of stake improvements , along with cross-rollup standards and interoperability developments that will enhance the ecosystem’s composability.
The network is also seeing innovation in user experience. At least 20% of Ethereum users are expected to rely on EIP-7702-enabled smart accounts in 2025 , which will provide enhanced security and functionality compared to traditional wallet architectures.
Challenges and Considerations
Despite the recent outperformance, Ethereum still faces several challenges. Bitcoin enjoys a relatively clear classification as a commodity in key jurisdictions like the US , while Ethereum’s more complex regulatory path, particularly regarding staking, has cooled some institutional enthusiasm .
Additionally, competition from other blockchain platforms remains intense. Solana is now leading the sector in key on-chain metrics such as DEX volume, apps revenue, and user activity , while Base is quickly capturing developer interest .
Conclusion: A Potential Paradigm Shift
Ethereum’s 75% gain over the past 90 days, compared to Bitcoin’s 33% increase, represents more than just a temporary market fluctuation. It reflects fundamental shifts in the cryptocurrency ecosystem, including growing institutional adoption of DeFi, successful implementation of scaling solutions, and increasing recognition of Ethereum’s utility beyond simple value storage.
While Bitcoin continues to serve as the foundation of the cryptocurrency market and maintains its position as digital gold, Ethereum’s recent performance suggests that the market is beginning to price in its unique value proposition as the infrastructure for decentralized applications, smart contracts, and the broader Web3 ecosystem.
The coming months will be crucial in determining whether this outperformance can be sustained. With continued development, regulatory clarity, and institutional adoption, Ethereum appears well-positioned to challenge Bitcoin’s long-standing dominance and potentially lead the next phase of cryptocurrency market evolution.
For investors and market observers, Ethereum’s recent surge serves as a reminder that in the rapidly evolving cryptocurrency landscape, technological innovation, utility, and ecosystem development can ultimately drive value creation in ways that may surprise even seasoned market participants.
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