Ethereum (ETH) is quietly consolidating its dominance in the crypto market, not through explosive growth but as a result of weakening competition.
According to a recent on-chain analysis of Binance trading activity from January 2023 to May 2025, ETH’s share of trading volume has grown steadily as altcoin liquidity continues to vanish.
While Ethereum’s trading volume has remained relatively stable—hovering between 300 trillion (T) and 490T—altcoins tell a different story. After peaking at 1.5672 quadrillion (Qa) in November 2024, total altcoin volume has plummeted to just 387.47T by May 2025. That sharp drop has pushed altcoins’ share of overall market activity from over 1Qa to under 400T, effectively shrinking their influence on the exchange.
This shift in dominance is less about Ethereum booming and more about investors fleeing smaller, riskier tokens. As confidence in speculative projects wanes—whether due to market fatigue, lack of fundamentals, or regulatory uncertainty—capital is increasingly consolidating in assets perceived as safer bets. For many, that means rotating back into ETH.
Ethereum’s resilience and credibility are key drivers behind this trend. Unlike many altcoins, ETH continues to benefit from an evolving DeFi ecosystem, regular network upgrades, and growing institutional interest. Market sentiment also favours Ethereum in anticipation of regulatory milestones like an ETH ETF approval.
In short, Ethereum’s growing dominance is a byproduct of an altcoin exodus rather than a standalone rally. Investors are signaling trust in Ethereum’s long-term vision and infrastructure by parking their capital there as the broader market turns cautious.
Supporting this view, analyst Michaël van de Poppe, founder of MN Trading Capital, recently noted that while Bitcoin (BTC) remains the market leader, indicators suggest a quiet shift in investor interest toward Ethereum. This shift in sentiment, though subtle, underscores ETH’s resilience and the market’s evolving preference for utility-backed crypto assets. However, van de Poppe emphasized that many investors remain anchored in bearish sentiment, preventing them from fully recognizing the shift.
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