Despite continued bearish movements in the market, Ethereum We are seeing strength in some areas. In a significant landmark, the leading altcoin has surpassed the largest digital asset, Bitcoin, on a key metric that defines the industry's strength.
Ethereum dominates important indicators
recent report Leon Waidmann, market expert and head of the On-Chain Foundation, said Ethereum is dominating important indicators over Bitcoin. The recent reversal highlights ETH’s growth momentum, driven by a maturing ecosystem, growing institutional interest, and increased network activity.
According to market experts, Ethereum has overtaken Bitcoin. The percentage of total supply held by digital asset treasuries (DAT) is one of the most closely watched adoption indicators in the sector. As more corporate treasuries, investment firms, and blockchain-based businesses choose to hold ETH instead of BTC, the market is starting to reflect the new narrative.
According to the data ETH Financial Company It currently holds 4.3% of the total supply, which is more than BTC's 3.6%. ETH outperforming BTC on this metric highlights a growing moment where Ethereum’s fundamental role in the cryptocurrency ecosystem is actually turning into a quantifiable institutional preference.
In our expert opinion, the surprising twist is completely logical. This is because there are more stakeholders with real operational needs compared to ETH. Bitcoin. This includes layer 2, DeFi protocols, DAOs, foundations, treasury firms, governments experimenting with on-chain infrastructure, and numerous web3 projects building on top of Ethereum. If this current trend continues to escalate, Waidmann expects major stablecoin issuers to show interest in holding strategic stakes in blockchains.
Participation across leading blockchains is declining.
Since the recent ETH price drop, there has been a steady decline in activity globally. networkIt is an uncommon change to a market-leading ecosystem, which is typically a long-term activity. Bytes only reported Weekly active wallet addresses in the ETH ecosystem have cooled after several months of high participation.
As can be seen in the Ethereum Weekly Engagement chart, there are over 8.2 million active ETH wallet addresses, down from a peak of 20 million in June 2025. This decline signals a brief slowdown in DeFi, NFTs, and user engagement. On-chain transactions.
Currently, network-wide activity has decreased by over 60% and Layer 2 interactions remain intact. However, overall usage of the ecosystem is clearly on the decline. Waidmann said this sharp decline is probably related to a cooling off in airdrop farming activity across Layer 2.
A significant portion of ETH is currently being withdrawn from cryptocurrency exchanges, indicating renewed confidence in the altcoin’s price outlook. ETH is currently Accumulated at a significant rate. Over the past 30 days, 700,000 ETH has left exchanges. Merchant Merlin famous This kind of supply shock never seems bullish until the charts catch up.
Featured image from pngtree, chart from Tradingview.com
editing process for focuses on providing thoroughly researched, accurate, and unbiased content. We adhere to strict sourcing standards and each page is diligently reviewed by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of the content for readers.
