Ethereum’s rising dominance in crypto markets is being driven not by a surge in its own trading activity, but by a sharp decline in altcoin volume.
According to a June 22 analysis by CryptoQuant contributor CryptoOnchain, Ethereum’s (ETH) market share on Binance has risen largely because the volume of other assets has sharply declined. ETH’s trading volume fluctuated between 300 trillion and 490 trillion between January 2023 and May 2025, remaining relatively stable.
Between November 2024 and May 2025, altcoin trading fell sharply from a peak of 1.57 quadrillion to just 387 trillion. The sharp drop in altcoin activity has increased Ethereum’s market share by default, rather than due to a rise in demand for the cryptocurrency.
Many investors exited smaller projects as risk appetite waned, and some capital probably moved into Ethereum, strengthening its position in the market. In the past, Ethereum has been more appealing in more cautious market conditions due to its maturity, network stability, and consistent activity. These attributes have stood out in the face of market uncertainty and shifting sentiment.
At the time of writing, Ethereum trades at $2,257, after falling over 10% amid a wider market downturn tied to rising Middle East tensions. Despite this, whale activity has picked up, indicating a “buy-the-dip” behaviour. On June 22, Lookonchain flagged a transaction in which a single wallet purchased 9,400 ETH worth $39 million, bringing total holdings to $333 million.
Ethereum’s network has also seen a strong rebound in activity. With over 500,000 ETH added in June alone, more than 35 million ETH are now staked, representing almost 30% of the total supply in circulation.
An ongoing demand in the decentralized finance and non-fungible token sectors has driven monthly transactions to a new high of 24.69 million. In addition, over 4.57 million ETH have been taken out of circulation as a result of EIP-1559 fee burns, according to Etherscan data.
Ethereum-based exchange-traded funds have also seen steady inflows. BlackRock accounted for the majority of the $849 million that entered ETH ETFs over the last month, as per SoSoValue data. If macro and regulatory conditions stabilize, some analysts predict a breakout to $2,800 in the near future, with $5,000–$8,000 targets in 2025.
