Ethereum Gains Market Share Not Due to Value, Altcoins Decline: CryptoQuant Report
Ethereum’s (ETH) market share growth in the cryptocurrency market is not due to its own trading boom, but rather due to a significant decline in the trading volume of other altcoins, according to the latest analysis from CryptoQuant on June 22.
Ethereum Holds Strong While Altcoins Decline
According to CryptoQuant contributor CryptoOnchain, Ethereum trading volume on Binance has remained stable, fluctuating between 300 trillion and 490 trillion from January 2023 to May 2025. Meanwhile, altcoin trading volume has plummeted from a peak of 1.57 quadrillion in November 2024 to just 387 trillion in May 2025.
This means that Ethereum’s market share is growing not because of increased demand, but because the rest of the market is weakening.
Risk Sentiment Declines, Investors Avoid Small Altcoins
In the context of geopolitical instability and market correction, investor risk appetite has decreased sharply. Many institutional and retail investors have withdrawn capital from small altcoin projects, shifting to more stable assets such as ETH.
Ethereum, with its stable network, developed and transparent ecosystem, often becomes a safer “haven” during cautious market times.
Whales Increase Buying, Long-Term Confidence
Although Ethereum is trading at $2,257, down more than 10% due to the impact of Middle East tensions and general negative trends, whale buying activity has increased sharply.
On June 22, data from Lookonchain showed that a whale wallet purchased 9,400 ETH (equivalent to $39 million), bringing the total ETH holdings to over $333 million, a positive signal from long-term investors.
Staking, DeFi, and NFTs Continue to Gain Momentum
Ethereum continues to maintain its appeal in the DeFi and NFT space, with notable numbers:
35 million ETH has been staked, accounting for nearly 30% of the total circulating supply.
Nearly 500,000 ETH were staked in June alone.
24.69 million monthly transactions, reflecting strong usage on the network.
More than 4.57 million ETH have been burned thanks to the EIP-1559 mechanism, helping to reduce inflationary pressure.
Ethereum ETFs Are Gaining steam, BlackRock Leads Flows
Ethereum-based exchange-traded funds (ETFs) have been attracting steady inflows. According to data from SoSoValue, $849 million has flowed into Ethereum ETFs over the past month, with BlackRock leading the way in terms of investment.
Future Forecast: ETH Could Break Out If Conditions Stabilize
Some analysts believe that if macro and regulatory factors remain stable, Ethereum could head towards $2,800 in the short term, and as far as $5,000-8,000 by 2025.
Summary
Ethereum’s current rise in dominance is not a signal of a strong bull run, but rather reflects investors’ strategic withdrawal from altcoins. However, with support from staking, whale activity, ETFs, and a stable technical foundation, Ethereum remains one of the strong pillars of the cryptocurrency market today.
