Ethereum Takes the Lead as Altseason Heats Up

Ethereum is outperforming Bitcoin in Q3, with its dominance crossing over 13% and its price appreciating by over 20%. In contrast, Bitcoin's dominance has increased at a much slower pace, with growth of around 1.5%. This trend is likely due to macro FUD pressure in the crypto market, which makes Treasury bonds more attractive to investors and reduces risk-taking capital in the crypto space.

The same data is reflected in crypto asset prices via CoinGlass. According to the data, ETH price appreciated by over 20% in Q3 thus far, while Bitcoin returned around 9%. Therefore, it is possible to conclude that Ethereum [ETH] is substantially outperforming Bitcoin [BTC] on a quarterly basis, with more than 2x higher returns.

One of the largest banks in the world, Bank of America, could be one of the catalysts for acceleration in rotation into altcoins. The bank sold off almost 70% of its MSTR shares during Q2 and bought 29x more BlackRock ETHA shares, adding fuel to the ETH/BTC ratio as it eyes a breakout above resistance.

With macro FUD pressure persisting in the crypto market, there is a plausible scenario where capital rotations into Ethereum will accelerate, providing further validation for the Altcoin Season Index to enter official altseason. If the ratio breaks out, it could open the door to a broader altcoin rally.