Ethereum’s recent increase in market dominance has been attributed not to an uptick in the cryptocurrency’s own trading volume, but rather to a significant decline in altcoin trading activity, according to an analysis from CryptoQuant.
Between January 2023 and May 2025, Ethereum trading volume on Binance remained relatively stable in the range of 300 trillion to 490 trillion. However, during the period from November 2024 to May 2025, altcoin volumes experienced a steep fall, dropping from a peak of 1.57 quadrillion to approximately 387 trillion units. This stark decline in altcoin trading naturally raised Ethereum’s share of overall market volumes, indicating the gain was more circumstantial rather than driven by an organic boost in Ethereum’s attractiveness or public appeal.
Investor sentiment appears to have shifted away from lower-cap cryptocurrencies in search of safer assets amid growing market uncertainty and diminishing risk appetite. Ethereum, widely recognized for its maturity, network reliability, and consistent performance, has emerged as an appealing refuge for investors fleeing smaller and less stable assets.
Amidst this volatile backdrop, Ethereum’s price dropped over 10%, settling near the $2,257 mark as markets responded negatively to broader geopolitical tensions in the Middle East. Despite the recent price weakness, whale investors have observed this downturn as a buying opportunity. For instance, on June 22, a notable transaction highlighted a wallet acquiring 9,400 ETH, valued at roughly $39 million, bringing its total holdings up to $333 million.
A simultaneous resurgence in network activity has occurred, with staking levels witnessing marked growth. June alone saw an additional 500,000 ETH staked on the network, bringing total staked ETH to over 35 million, representing nearly 30% of the circulating supply.
Further underlying the network’s strength, Ethereum recorded its highest monthly transaction volume of 24.69 million, supported primarily by sustained activity in DeFi and NFT sectors. Additionally, intensified use of the network, driven partly by EIP-1559 transaction fee burns, has now removed more than 4.57 million ETH from circulation, according to Etherscan.
Ethereum-based exchange-traded funds (ETFs) have also garnered strong investor interest. Over the last month alone, these funds recorded inflows totaling $849 million, with a substantial portion going to BlackRock’s Ethereum ETF.
Market analysts suggest potential positive developments for Ethereum prices if current macroeconomic and regulatory environments stabilize. Current price projections include near-term resistance around $2,800, with higher target ranges of $5,000 to $8,000 by 2025.
