Ethereum’s Market Share Grows—But Not for the Reason You’d Think
Ethereum’s dominance in the crypto market is climbing, but not because it’s suddenly seeing a flood of new interest. Instead, it’s more about what’s happening—or rather, *not* happening—with altcoins.
A recent analysis by CryptoQuant contributor CryptoOnchain points out that Ethereum’s share of trading volume on Binance has grown largely because activity in other cryptocurrencies has dropped off sharply. Between January 2023 and May 2025, ETH’s trading volume hovered between 300 trillion and 490 trillion—steady, but not exactly surging. Meanwhile, altcoin volume plummeted from a high of 1.57 quadrillion in November 2024 to just 387 trillion by May 2025.
In other words, Ethereum isn’t necessarily winning; everything else is just losing harder.
Why Investors Are Flocking to ETH (Or Maybe Just Fleeing Altcoins)
When the market gets shaky, people tend to pull back from riskier bets. That seems to be what’s happening here. Smaller altcoins have taken a hit as investors grow cautious, and some of that money has likely shifted into Ethereum. It’s not that ETH is suddenly the hottest thing—it’s just the safer harbor when the crypto seas get rough.
Ethereum’s got a few things going for it in times like these: a more established network, steady usage, and fewer wild swings compared to smaller tokens. That reliability makes it a default choice when confidence in the broader market dips.
Right now, ETH is trading around $2,257, down over 10% amid a broader slump tied to rising tensions in the Middle East. But interestingly, big players—whales—are stepping in. On June 22, one wallet scooped up 9,400 ETH (about $39 million), bringing its total holdings to a staggering $333 million. That kind of move suggests some see this dip as a buying opportunity.
Network Activity Tells a Different Story
While trading volume might not be exploding, Ethereum’s network is far from quiet. Over 35 million ETH is now staked—nearly 30% of the total supply—with more than 500,000 ETH added in June alone.
Then there’s the DeFi and NFT sectors, which are still humming along. Monthly transactions recently hit a new high of 24.69 million, and thanks to EIP-1559’s fee-burning mechanism, over 4.57 million ETH has been permanently removed from circulation. That slow, steady reduction in supply could matter in the long run.
Even Ethereum ETFs are seeing steady interest. BlackRock alone accounted for most of the $849 million that flowed into these funds over the past month. If the broader market steadies—and that’s a big *if*—some analysts think ETH could push toward $2,800 soon, with even higher targets ($5,000 to $8,000) in 2025.
For now, though, Ethereum’s rise seems less about its own strength and more about everything else fading around it. Whether that’s sustainable is another question entirely.
