Ethereum’s price surged more than 10% today, outpacing Bitcoin as investment capital appears to be shifting from the leading cryptocurrency to the second-largest by market capitalization, according to analysis released Monday.
The rally in Ethereum, which briefly surpassed $2,350, was fueled by a combination of factors including increased inflows into newly launched spot Ethereum exchange-traded funds (ETFs) and substantial purchases by corporations, according to reports from Block Media and CoinDesk. The price increase marks the highest level for Ethereum in six weeks.
“The relative strength of Ethereum suggests the possibility of capital rotation,” said Joel Kruger, an analyst at LMAX Group, as reported by CoinDesk. Kruger attributed the gains to network developments and growing expectations for the value of cryptocurrencies beyond Bitcoin.
Data from SoSoValue indicates that approximately $160 million in new capital entered U.S. Spot Ethereum ETFs last week, the largest weekly inflow since mid-January. BlackRock’s staking Ethereum ETF, ETHB, was particularly active, attracting $45 million in its first two days of trading.
Corporate investment similarly played a significant role. BitMine (BMNR), a company focused on Ethereum-based financial strategies, reportedly purchased approximately 122,000 ETH, equivalent to roughly $280 million, over the past two weeks. Following the purchase, BitMine’s stock price rose 13.6% on Monday, while SharpLink Gaming (SBET), another Ethereum holder, saw a 9.1% increase.
Analysts are interpreting the price movement as a signal of capital rotating from Bitcoin to altcoins, a pattern known as “순환매” (sunhwanmae) in Korean markets. While Ethereum’s gains are notable, experts caution that the rally remains sensitive to macroeconomic indicators and the Federal Reserve’s inflation response, potentially leading to a quicker correction for altcoins compared to Bitcoin.
The shift in investor focus comes after a period of concentrated investment in Bitcoin following the launch of Bitcoin ETFs earlier this year. However, recent data suggests a reversal of this trend, with investors increasingly recognizing Ethereum’s potential for generating returns through staking and its role in the broader development of the cryptocurrency ecosystem.
