Ethereum Outperforms Bitcoin in Q3: Is a Repeat of 2025 in the Works?

The total crypto market cap has gained 6%+ this quarter, putting it on track for its first bullish quarterly close since Q3 2025. However, Bitcoin dominance has yet to reclaim the 60% level, which is a key resistance point.

Ethereum's performance in the ETH/BTC ratio has been particularly strong, climbing 10%+ in Q3 and putting it on track for its strongest quarterly performance since the 56% rally in Q3 2025. This rotation is already playing out, with Ethereum surging 18.55% in July, more than twice Bitcoin's return.

Historically, capital rotates from Bitcoin into Ethereum as investors move further out the risk curve. However, Ethereum's market structure suggests something stronger may be unfolding, including a drop in its exchange supply ratio to 0.127, the lowest level on record.