Key Takeaways
Ethereum is starting to steal the spotlight. For the first time since the 2022 cycle bottom, ETH Perpetual Futures volume dominance has overtaken Bitcoin’s. Is ETH gearing up to outperform BTC through the rest of Q3?
Ethereum [ETH] is closing out the first month of Q3 with returns nearly 5x those of Bitcoin [BTC]. This performance clearly underscores ETH’s role as the cycle’s dominant high-beta asset.
In fact, that outperformance hasn’t gone unnoticed. Ethereum spot ETFs have seen $10.53 billion in inflows this month, well ahead of BTC’s $6.74 billion, suggesting institutions are leaning into ETH.
However, structurally, this move signals just the beginning. For the first time since the 2022 cycle low, Ethereum’s 7-day EMA of Perpetual Volume Dominance has decisively flipped above Bitcoin’s.
Source: Glassnode
For context, Perp Volume Dominance reflects where traders are placing leveraged bets.
And as of late July 2025, Ethereum’s 7-day EMA of Perpetual Volume Dominance has climbed above 60.4%, while Bitcoin’s has dropped below 36%, marking the widest divergence in over three years.
Backing this shift, ETH perpetual Open Interest has climbed by over 600,000 ETH, while BTC added just 50,000 BTC, marking a 12x delta in native unit inflows this month.
Leveraged traders bet big on Ethereum continuation
The takeaway is clear: Perp traders are rotating leverage into ETH, pulling directional liquidity away from BTC.
And with institutions already leaning into ETH via ETF inflows, this shift lines up. Ethereum is quickly becoming the “go-to” asset for risk-on positioning across both spot and derivatives markets.
In fact, the shift is showing up in relative price structure as well. ETH/BTC is trading at 0.03, meaning 1 ETH equals 0.03 BTC, or put differently, 1 BTC now costs around 33.3 ETH.
Source: TradingView (ETH/BTC)
However, this marks a significant shift from earlier levels. The pair started the month near 0.02, so Ethereum has gained 50% against Bitcoin, signaling strong relative strength.
And this divergence matters. It tells us that Perp traders are deploying directional leverage into ETH with high conviction, backed by clear on-chain validation.
So, with Ethereum now commanding the lead in both spot market inflows and derivatives positioning, the risk-reward skew for Q3 increasingly favors ETH outperformance over BTC.
