Ethereum dominance is rising as other altcoins decline.

• The dominance of Ethereum is growing because other altcoins continue to fight.
• ETH is still experiencing strong pressure down and risk a drop below $ 2k.

Since he reached a local maximum of $ 3.7,000 at the beginning of January, Ethereum [ETH] significantly dropped. After trying to escape from this descending enterprise a month ago, ETH faced a resistance of $ 2.8,000, leading to a move.

Despite these struggles on its price charts, Cryptoonchain He noted that the dominance of ETH continued to grow.

Growth of Ethereum dominance continues

According to Cryptoquant, Ethereum captured a significant market share on the basis of data from January to May 2025.

This increase in the dominance of ETH is primarily driven by a significant decrease in the volume of other altcoins.

Unlike the market expectations, Ethereum trading has not led to a recent increase. From 2024 to 2025, the volume of ETH trading remained relatively stable and between 300 trillion and 490 trillion.

On the other hand, the volume of altcoins in November 2024 reached a peak to 1.5672 quadrillion, but until May 2025 it dropped to 387.47 trillion. The share of altcoin shops has fallen from more than 400 trillion under 400 trillion, which reflected a significant decline.

This trend suggests that investors are pulling liquidity from more risky projects. Some of this capital seems to have been redirected to Ethereum, considered a relatively safer alternative.

The dominance of Ethereum is therefore not primarily the result of its growth, but rather the retreat of its competitors. Despite the fact that ETH is unable to grow significantly, it remains very favorable compared to other smaller coins.

Looking at the Altcoin Index, it shows that the overall altcoin market has fallen. This metric decreased between 88 to 12 between December 2024 and June 2025, signaling the weakening altcoin market.

Any impact on ETH price movement?

Although the dominance of Ethereum has increased significantly sharply, its growth was problematic. Since then, demand, activity in the chain has tried to keep up with the market.

At the time of printing, the NVT Ethereum ratio increased to 1041, which indicates a significant overvaluation of the network.

This means that the activity on the chain is low due to the price, indicating that current ETH prices may not be supported by organic demand.

Historically, such disconnection – where the value surpasses the actual use of the network – often market signal peaks, followed by repairs.

If this trend continues, ETH could react again to better adapt to the real demand and point to a speculative market environment.

Despite the growing dominance of Ethereum on the market, long -term holders are still in red.

Also, the long/short difference between the MVRV remained negative and has been the case in the last four months, signaling the persistent unprofitability for long -term investors ETH.

The negative value here suggests that short -term holders have a higher unrealized profit than LTH. For example, those who have acquired ETH between December 2024 and February 2025 usually sit.

This means that despite the growing influence of ETH it does not notice significant steps to be up, while the other altcoins are still immersing. Under prevailing market conditions, ETH seems to be overvalued and must be re -adjusted to satisfy the real demand.

If repetitions appear, we could see how ETH dropped below $ 2k. However, if speculators continue to hold the market, Ethereum will continue with recovery and try to recover $ 2.5,000.