For the first time in over seven years, Ethereum has surpassed Bitcoin in monthly spot trading volume on centralized exchanges. This historic shift signals a major investor rotation toward utility-driven assets like Ethereum, fueled by anticipated ETH ETFs, staking yields, and explosive growth in DeFi.
In this video, we break down why Ethereum eclipsing Bitcoin in trading volume is such a pivotal moment for the crypto market. From increased liquidity in ETH markets to potential signs of a coming altcoin season, Ethereum’s momentum could reshape the narrative of digital oil vs digital gold in the years ahead.
Do you think Ethereum’s surge in spot trading volume means it’s ready to outperform Bitcoin—or is this just a short-term rotation? Share your thoughts in the comments 👇
👉 Subscribe for daily alpha on crypto market trends, bold Bitcoin predictions, and altcoin gems that could 10x your portfolio! – https://www.youtube.com/channel/UCpjN8bNE-CoAgpfMatghM9g
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In this video, we break down why Ethereum eclipsing Bitcoin in trading volume is such a pivotal moment for the crypto market. From increased liquidity in ETH markets to potential signs of a coming altcoin season, Ethereum’s momentum could reshape the narrative of digital oil vs digital gold in the years ahead.
Do you think Ethereum’s surge in spot trading volume means it’s ready to outperform Bitcoin—or is this just a short-term rotation? Share your thoughts in the comments 👇
👉 Subscribe for daily alpha on crypto market trends, bold Bitcoin predictions, and altcoin gems that could 10x your portfolio! – https://www.youtube.com/channel/UCpjN8bNE-CoAgpfMatghM9g
📧 Email: cryptorobothelp@gmail.com
💰 Affiliate Links
Sofi Checking & Savings – Get $25 free ➝ https://www.sofi.com/invite/money?gcp=16a53d0f-b4b2-441d-9100-cfb506305260&isAliasGcp=false
Sofi Investing – Free $25 in stock ➝ https://www.sofi.com/invite/invest?gcp=ab31edd8-701e-4109-9225-51b41e35d246&isAliasGcp=false
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#Ethereum #Bitcoin #ETH #BTC #Crypto #CryptoNews #DeFi #Web3 #Altcoins #Blockchain #EthereumETF #CryptoInvesting
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LearningTranscript
00:00welcome back to the deep dive today we're tackling something genuinely significant you could even say
00:11historic in the crypto world yeah big news huge we're talking about a really major shift something
00:19that hasn't happened in what over seven years that's right over seven years ethereum's spot
00:24trading volume has actually officially overtaken bitcoins now this isn't just some you know
00:30random stat no not at all it feels like it could really be signaling uh well a whole new chapter
00:36for digital assets it certainly has that potential yes so our mission today what we want to do is
00:41unpack what this milestone really means why it matters you know for investors for traders and
00:46honestly for that whole web3 ecosystem the decentralized web stuff right the implications
00:52are pretty wide ranging we're going to try and get into the data the stories behind it and uh
00:57what this might mean looking forward sounds good lots to cover and just before we really dive in a
01:02quick but uh important thing if you find these deep dives useful if you get value out of them it really
01:07helped us out a ton if you could you know like the video subscribe if you're not already maybe hit that
01:13notification bell yeah it genuinely makes a difference helps people find the content exactly
01:18it boosts us in the algorithms helps these insights reach more people like you and well
01:23let's just keep making this kind of content so your engagement really fuels these discussions we're
01:28super grateful for the support definitely okay ready to jump in let's do it so this headline ethereum
01:36volume over bitcoin it's really something and emphasizing that over seven years part it just hammers home
01:43how rare this is how big a deal right what's really striking i think is that this isn't like a tiny
01:49lead for ethereum it's a clear measurable shift everyone serious is watching this and if you picture the
01:56charts maybe some listeners have seen them see you've seen that eth volume line cross above the btc
02:02line after all this time it's visually powerful yeah it really jumps out it says so much doesn't it
02:07about uh a real change in market dynamics maybe investor priorities something that's been building
02:13for a while i think that's a great point it hasn't just happened overnight definitely not it feels like
02:18the result of several different forces all coming together it is a powerful observation because i mean
02:23for so long bitcoin was just the undisputed champ right trading volume king the main way money came into
02:31crypto fault yeah and now maybe suddenly maybe not so suddenly if you've been watching closely ethereum
02:38takes the lead we're talking monthly spot volume here on the big exchanges right actual eth being
02:44traded for dollars or other crypto direct trading on regulated platforms surpassing bitcoin first time in
02:52over seven years it feels seismic not just noise what are your first thoughts what does that flip
02:57immediately suggest is it just a pivot or is there more nuance well it's more than just numbers
03:02changing places isn't it it's symbolic it forces us to uh really relook at how we think about these
03:08two assets okay for years the story was pretty set bitcoin is digital gold right the store of value
03:14exactly store of value hedge against inflation bedrock asset it's what institutions looked at first
03:20seen as the safer bet for traditional finance dipping a toe in scarcity fixed supply that whole narrative
03:26and ethereum always digital oil the utility player pretty much the engine the infrastructure
03:32the programmable blockchain running this huge ecosystem but maybe not the main thing people
03:37are trading volume wise day to day so this flip how do you read that in terms of those narratives
03:44are traders or investors starting to value the utility the doing more than the holding that's the
03:50million dollar question isn't it it could very well signal that fundamental reevaluation a real
03:55challenge to the old hierarchy it hints that the market's maturing maybe that the doing the
04:01utility the apps the ecosystem growth actually using the network is becoming just as or maybe even more
04:07important than just passively holding something as a store of value interesting so sophistication is
04:12increasing possibly investors looking beyond just scarcity looking at economic output network
04:18effects are we maybe seeing a bit of a redefinition of value in crypto maybe the iu isn't just
04:23scarcity but also what a network does the economy it supports and this isn't happening randomly there
04:29are specific things driving ethereum's demand right now top of the list i guess has to be the etf talk
04:35oh absolutely the ethereum etf anticipation we saw the craziness with the bitcoin etfs earlier this year
04:40the money that flowed in how much weight do you put on the anticipation of etfs driving this volume are
04:47there other catalysts too the etf anticipation is massive huge driver the bitcoin etf launch set a
04:54very clear precedent institutions investors they saw it work saw the inflow saw the price impact they
04:59saw the playbook exactly so it's natural to think okay ethereum's next that anticipation alone creates
05:05demand now people positioning themselves wanting to get in before those potential floodgates open
05:10front running the institutions maybe you could say that getting set for when those regulated products
05:16make it easy for traditional money the kind that prefers etfs over crypto exchanges to come in
05:22that regulatory clarity that ease of access it unlocks potentially vast amounts of capital okay so etfs
05:29are a big piece but ethereum has something else bitcoin doesn't right that native staking yield oh yes the
05:36staking yields a critical difference bitcoin you just hold it ethereum you can lock it up secure
05:42the network and earn rewards how big a deal is that yield especially for institutions looking for
05:47income it's an absolutely massive differentiator especially for institutions think about the
05:51traditional finance world finding decent reliable yield can be tough right so the chance to earn a
05:57consistent native yield on a major liquid asset like ethereum that's incredibly attractive it changes
06:03eth from just a speculation or store of value play into something that generates income like a bond or
06:08a dividend stock almost in a way yeah when you stake you're becoming a validator doing work for the
06:14network processing transactions keeping things secure under proof of stake and you get paid for that
06:20in new eth and transaction fees it makes eth a productive asset and we're seeing more eth being staked
06:26that stake eth supply growth metric exactly that metric is climbing more and more eth is getting locked
06:33up for staking and that's crucial because it reduces the circulating supply the amount available
06:37to trade ah supply and demand basic economics less supply available same or rising demand it pushes up the
06:44price of what's left it's a powerful incentive bridging that gap between traditional finances hunt for
06:50yield and crypto's innovation it's more than just hoping the price goes up okay so we've got etf hype pulling
06:56demand staking yields pulling demand and reducing supply and and then there's just the sheer activity on
07:01ethereum itself defy nfts tokenization how much does the eth volume reflect the health of that whole
07:08ecosystem it's intrinsically linked completely symbiotic ethereum is the main settlement layer
07:12for most of defy lending borrowing exchanges all that still the dominant player there oh yeah and nfts too
07:19largely yeah plus all these projects trying to put real world assets on the blockchain more activity there
07:23means more need for eth not just for gas fees to make transactions right the fuel cost but also as collateral in
07:30defy as the money used in decentralized apps as the base asset and liquidity pools look at the defy tvl
07:36dominance total value locked ethereum still holds the lion's share so the volume isn't just speculation it
07:43reflects real use unequivocally it validates its utility its value it shows real world use a buzzing developer
07:51scene it's like a thermometer for the web3 economy's health which brings us to this idea of the rotation of
07:57capital is this all just new money coming into crypto or are we seeing investors shifting funds
08:03maybe from bitcoin into ethereum seeing eth as the next big growth story after btc's run i think it's
08:10almost certainly a mix of both but that rotation idea it's definitely part of the picture and maybe an
08:14underestimated part well think about it bitcoin had its big run got its institutional nod it's more
08:20established now some investors maybe those looking for higher growth higher potential returns the risk
08:26takers or just growth seekers they might look at ethereum with its ecosystem its utility the etf potential
08:34the staking yields and see the next major growth narrative not necessarily the next bitcoin but the
08:39next big wave exactly suggest market maturity maybe capital flowing more intelligently to where the
08:45dynamic utility and growth potential seem highest not just sticking with the original store of value
08:51play it shows a deeper understanding of the different roles these assets play okay so if you're
08:55an active trader especially an eth trader what does all this increased volume mean for you good news
09:01right oh absolutely positive for eth traders more volume means a healthier more dynamic market you get
09:07stronger liquidity meaning easier to buy and sell without moving the price too much precisely more buyers
09:13and sellers at different prices that plus the higher volumes usually leads to tighter spreads the gap
09:18between buy and sell prices get smaller right the bid ask spread narrows that means it costs you less
09:25to get in and out of trades less slippage especially if you're trading larger amounts so overall more
09:31opportunity definitely easier entries and exits better price discovery lower execution risk it makes the market
09:37more efficient more attractive for sophisticated strategies it's a sign of maturity now flip side what
09:43about the bitcoin holders how should they view this bitcoin still the big institutional hold right the
09:48corporate treasury asset that's a really important nuance yes bitcoin absolutely maintains its lead in
09:54institutional reserves big companies traditional finance players like microstrategy they're still
10:00mostly holding btc for the long haul the digital gold play exactly hedging inflation strategic allocation
10:07they like the scarcity the track record but this volume flip it does strongly suggest a growing
10:12preference among well retail and defi investors for eth and maybe a newer wave of institutions too so a
10:19potential split in strategy it could be it suggests that while some big players stick with btc's door of
10:25value story another big chunk of the market maybe those more active in web3 are focused on yield
10:32sees eth as more dynamic more useful more full of opportunity right now interesting so maybe not
10:38one size fits all in crypto strategies anymore seems that way different investor types different goals
10:44different asset choices this pattern eth gaining strength against btc especially in volume it rings a
10:50bell doesn't this sometimes foreshadow what people call altcoin season ah yes the harbinger of altcoin
10:58season you're right to make that connection can you explain that what typically happens how does that work yeah
11:02historically when money flows into eth like this and eth starts outperforming bitcoin significantly it
11:08often kicks off a broader rally in other altcoins why is that the logic is pretty simple if ethereum
11:13the biggest altcoin by far is doing well gaining interest showing strong utility it kind of validates
11:20the whole smart contract ecosystem right lifts all boats sort of kind of investors who made gains in
11:26eth or are just feeling bullish and looking for higher returns start looking down the list where's the
11:31next opportunity so the capital trickles down exactly it flows into smaller sometimes more speculative
11:37altcoins especially those built on ethereum or with strong narratives they ride the wave of optimism the
11:43idea being if eth is booming good projects built on it or similar to it should too and altcoin season
11:50means those smaller coins see big gains typically yes they often outperform both bitcoin and ethereum
11:57during those periods as capital chases higher risk higher reward plays down the market cap ladder it's a time of
12:04broad exciting growth across many different digital assets fascinating okay let's zoom out again broader
12:10web 3 the ecosystem you called ethereum the settlement layer what does this surge in eth activity really
12:16tell us about the health of d5 nfts tokenization is it just more money sloshing around or something
12:22deeper i'd say it's definitely deeper this eth activity it's like a direct pulse check on the whole
12:26ecosystem's health well more eth volume especially sustained volume means more actual use more transactions
12:33happening more smart contracts running more nfts being created and traded more value being locked in
12:39defy it reflects real usage real development not just speculation right ethereum is still the heart
12:45of decentralization the foundation for so much of web3 when it's buzzing like this it shows competence in
12:51the platform its security its future upgrades it means builders are building users are using it supports
12:56innovation across the board exchanges lending gaming identity everything okay and let's drill back into
13:02that lure of staking yield for institutions you contrasted lido the liquid staking protocol with
13:09microstrategy just holding bitcoin can you flesh out why that yield difference is such a game changer for
13:15big money absolutely for institutional money generating yield is often core to their whole strategy
13:20traditional finance runs on yield bond interest stock dividends rent from real estate right income
13:25generation bitcoin is great as digital gold scarce resistant to censorship but it doesn't inherently
13:32produce income just by holding it microstrategy holds it hoping the price goes up hedging against fiat
13:39they don't get a bitcoin dividend okay ethereum after it switched to proof of stake is different
13:45staking eth means you're actively helping run the network you lock up your eth you validate transactions
13:51you help create blocks and you get paid for that work in new eth and fees so it becomes a productive asset
13:56exactly it works for you now protocols like lido they offer liquid staking this is super attractive for
14:03institutions well liquid because you stake your eth you start earning rewards but instead of just having
14:07it locked up lido gives you back a different token like steve this token represents your state deed plus the
14:13rewards it's earning and you can use that stiff token yes that's the key you can use it in other defi apps
14:19maybe as collateral to borrow against or put it in a liquidity pool to earn even more so you get the
14:24staking yield plus you keep your capital liquid and potentially working elsewhere wow okay best of both worlds
14:30for many institutions yeah it's yield and flexibility that's a much more dynamic investment compared to just
14:36holding a non-yielding asset like bitcoin it lets them potentially compound returns within defi
14:42while helping secure ethereum it's a really compelling setup that ties eth deeply into the functional economy
14:48so this really strengthens that digital oil idea doesn't it it's not just tech utility it's real
14:53economic activity is this volume surge proof that ethereum is now seriously competing with bitcoin's
15:00digital gold story by showing off its active economic engine i think it absolutely is it reinforces
15:05that digital oil narrative significantly if bitcoin is the scarce gold you store away ethereum is the oil
15:11that makes the whole machine run exactly the high trading volume shows it's being used moved consumed not
15:17just stored it's the fuel for transactions the collateral for loans the currency of the nft world
15:22the base layer for tokenization so the market is valuing the doing more it really looks that way
15:27that the economic activity the function the utility is being valued maybe more highly now than just the
15:34passive holding of a static asset it makes ethereum a serious contender not by being better gold but by
15:40being indispensable digital oil it shifts the conversation totally from what's the best store of value to
15:46maybe what asset has the most economic activity the most utility the most growth potential in this
15:52new digital world it's a subtle but powerful redefinition of crypto value okay to really get how
15:58big this moment is we need a bit of history ethereum's had busy periods before but this feels different
16:04let's touch on some key moments first that shanghai upgrade in 2023 why was that such a critical turning
16:10point for staking shanghai back in april 23 was absolutely pivotal a real game changer its main job
16:17was simple but crucial it allowed people to finally withdraw their staked eth which they couldn't do
16:22before nope before shanghai if you staked your eth to help secure the network it was locked up indefinitely
16:30no clear timeline on when you could get it back that was a huge risk right especially for big institutions
16:36needing liquidity yeah locking up capital with no exit date is tough exactly so enabling withdrawals
16:42massively reduced risk for stakers and what happened it sparked massive staking participation
16:49confidence soared because the exit door was now visible precisely it removed a major barrier making
16:55those attractive staking yields we talked about much more appealing to a wider range of investors
16:59it was key to making eth more institution friendly the smooth rollout of withdrawals built a lot of trust
17:05okay and then right alongside that we have these ongoing ethereum etf filings and all the buzz around
17:10them how does that feed into the current volume surge the etf filings they're not just rumors yeah
17:15these are concrete moves by huge players blackrock fidelity you name it it signals very clearly that
17:21institutional investors are actively preparing to deploy significant capital into eth via familiar regulated
17:27channels it's a serious vote of confidence from wall street absolutely when these giants file for spot
17:33ethereum etfs it tells the market they see serious long-term demand for eth exposure from their clients
17:39it adds legitimacy signals deeper integration with traditional finance and that attracts more capital
17:45we bet it brings in money that might have stay on the sidelines waiting for those easy regulated on ramps
17:51even just the anticipation creates buying pressure now as people try to get ahead of those potential flows
17:56okay so ethereum's had big moments before i remember the 2017 ico craze right eth was everything then
18:02the fuel for the ico boom definitely and the 2021 nft explosion mostly on ethereum dominant chain for nfts
18:09yeah yeah passive activity defy summer in 2020 ethereum was the backbone unquestionably yeah the foundation
18:16for all that innovation but you're saying even during those massive peaks of activity eth volume
18:23rivaled bitcoins but never actually beat it until now that's exactly the point that's what makes
18:28this moment unique truly historic in 2017 volume soared as people bought eth for ico's in 2021 nft mania
18:36drove huge eth volume d5 summer same story eth volume was incredibly high it competed strongly with bitcoin
18:43showed its power but never quite crossed the line never definitively surpassed bitcoin in monthly
18:48spottos volume not until now this time is different it's a clear crossover it feels like
18:54the culmination of years of building ecosystem growth the merge shanghai the etf narrative
18:59all leading to this point it's not just another peak it's new territory so let's quantify this what
19:05are the key charts the metrics we should really watch to grasp the scale of this obviously the main
19:09one is the flip chart itself the eth versus btc monthly spot volume seeing that crossover what does
19:15it scream to you that chart is the smoking gun right the core visual evidence seeing that eth line
19:20climb above btc after seven long years it's dramatic it's not just a data point it graphically shows a
19:27fundamental shift in trading focus and where the capital is most active it makes it real exactly it
19:32validates this whole conversation it's the clearest sign that something genuinely new is happening
19:38moving beyond theory to actual observable market behavior okay beyond raw volume traders love the
19:45eth btc ratio can you break that down what is it and why is it such a key indicator of relative
19:51performance yeah the ethb tc ratio is super important for tracking relative strength it simply measures
19:56how much bitcoin one ethereum is worth so if the ratio is 0.05 one eth buys you 0.05 btc and if the ratio
20:04goes up if it's rising eth is outperforming bitcoin its price is going up faster or falling slower if it's
20:10falling bpc is doing better relative to eth so traders watch it to see which horse to back pretty
20:15much it's critical for deciding whether eth is beginning an outperforming cycle against bitcoin
20:20it heavily influences allocation decisions should your portfolio be weighted more towards eth or btc
20:26a rising ratio especially combined with this volume flip is a very bullish signal for eth's relative
20:31strength it suggests a potential re-rating against bitcoin got it and we mentioned staked eth supply
20:38growth earlier let's look at the mechanics again how does locking up more eth for staking directly
20:44impact supply demand and price it's classic supply demand but tied to network security as more eth gets
20:50staked it's removed from the circulating supply the pool of eth available to be freely traded on
20:55exchanges it's locked up working for the network right so the available trading supply shrinks meanwhile if
21:00demand stays the same or increases which it seems to be doing thanks to utility defi etfs you have
21:08less supply chasing that demand which pushes the price up naturally it creates upward pressure on
21:12the price of the eth that is still circulating it's a fundamental economic force baked into ethereum's
21:17design now the more secure the network becomes through staking the scarcer the tradable eth becomes
21:23it's a structural tailwind okay and then there's defy total value locked tvl dominance why is ethereum
21:29holding on to its lead and defy capital so important for validating its value and supporting this volume
21:35surge defy tvl dominance is like a direct measure of ethereum's economic gravity and utility it shows
21:41how much capital is actually deposited and working within defy apps lending exchanges etc on ethereum
21:46versus other chains and ethereum is still way ahead consistently holds the vast majority that dominance
21:52shows it's still the most trusted most used arguably most secure platform for serious decentralized
21:59finance billions are locked there so it's not just hype there's real financial activity tons of it that
22:04fundamental utility that trust that network effect it directly underpins and justifies the high
22:09trading volume eth is essential to participate in that huge defy ecosystem it validates its core
22:16value proposition beyond just price speculation lastly looking outside crypto at reports like coin
22:21shares weekly summaries on etf flows btc versus eth what can those tell us about institutional sentiment and
22:28actual money moving those reports are gold dust for seeing what institutions are actually doing with their
22:33money not just what they're saying they track flows into regulated products like etfs so you can
22:37compare btc etf flows with potential eth etf flows exactly right now bitcoin etfs have a huge head start in
22:45assets but watching the flows week by week tells you where the new institutional money is leaning any
22:52significant sustained inflows into eth-based products would be a massive confirmation of growing institutional appetite
22:59it's like an external reality check from traditional finance precisely it shows how traditional capital
23:04allocators are voting with their dollars in the regulated markets it's a crucial indicator of broader
23:09market sentiment among those long-term often more conservative players wow okay what a deep dive that
23:15was we've really covered some ground this historic moment eth spot volume topping btc after seven years
23:22the shift towards utility staking yields etf hopes the impact on web3 it really feels like more than just
23:29numbers changing it does feel like a potential narrative shift a maturation yeah so as we wrap up i really
23:34want to turn it over to you listening we've thrown a lot out there what stands out most to you do you
23:38think ethereum is really set to maybe flip bitcoin long term as the most traded maybe most dominant
23:43crypto or is this just a temporary rotation big questions yeah and thinking about your own approach
23:49are you more drawn to bitcoin as digital gold that store of value or ethereum as digital oil the utility
23:57engine and why what's your reasoning and what about altcoin season is this the starting gun in your
24:03view or just eth getting its moment finally if this eth trading dominance sticks does that make eth the
24:09better long-term bet for you lots to chew on these really are the core questions this whole situation
24:15forces us all to grapple with it makes you reassess everything definitely and maybe one final thought to
24:21leave everyone with build on that a bit if the market is increasingly valuing utility active use yield
24:28economic breadth more than just passive storing of value what does that mean for the whole digital
24:34asset space not just eth versus btc interesting is this the start of a fundamental shift in how we define
24:40crypto value itself what will leadership look like in the next decade maybe it's less about being static
24:45gold and more about being dynamic oil or something else entirely we haven't even seen yet a fantastic
24:51provocative thought to end on is value shifting from static to dynamic brilliant well thank you so
24:57much for joining us on this deep dive into ethereum's huge moment my pleasure fascinating topic we really
25:03appreciate you tuning in engaging with this stuff keep learning keep questioning and we'll catch you on the next deep dive
25:15you
25:34you
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