Key Takeaways
Ethereum is beginning to steal the highlight. For the primary time because the 2022 cycle backside, ETH Perpetual Futures quantity dominance has overtaken Bitcoin’s. Is ETH gearing as much as outperform BTC by the remainder of Q3?
Ethereum [ETH] is closing out the primary month of Q3 with returns almost 5x these of Bitcoin [BTC]. This efficiency clearly underscores ETH’s function because the cycle’s dominant high-beta asset.
In actual fact, that outperformance hasn’t gone unnoticed. Ethereum spot ETFs have seen $10.53 billion in inflows this month, effectively forward of BTC’s $6.74 billion, suggesting institutions are leaning into ETH.
Nevertheless, structurally, this transfer alerts only the start. For the primary time because the 2022 cycle low, Ethereum’s 7-day EMA of Perpetual Quantity Dominance has decisively flipped above Bitcoin’s.
Supply: Glassnode
For context, Perp Quantity Dominance displays the place merchants are putting leveraged bets.
And as of late July 2025, Ethereum’s 7-day EMA of Perpetual Quantity Dominance has climbed above 60.4%, whereas Bitcoin’s has dropped beneath 36%, marking the widest divergence in over three years.
Backing this shift, ETH perpetual Open Interest has climbed by over 600,000 ETH, whereas BTC added simply 50,000 BTC, marking a 12x delta in native unit inflows this month.
Leveraged merchants wager huge on Ethereum continuation
The takeaway is evident: Perp merchants are rotating leverage into ETH, pulling directional liquidity away from BTC.
And with establishments already leaning into ETH through ETF inflows, this shift strains up. Ethereum is shortly turning into the “go-to” asset for risk-on positioning throughout each spot and derivatives markets.
In actual fact, the shift is exhibiting up in relative worth construction as effectively. ETH/BTC is buying and selling at 0.03, which means 1 ETH equals 0.03 BTC, or put in a different way, 1 BTC now prices round 33.3 ETH.
Supply: TradingView (ETH/BTC)
Nevertheless, this marks a major shift from earlier ranges. The pair began the month close to 0.02, so Ethereum has gained 50% towards Bitcoin, signaling robust relative power.
And this divergence issues. It tells us that Perp merchants are deploying directional leverage into ETH with excessive conviction, backed by clear on-chain validation.
So, with Ethereum now commanding the lead in each spot market inflows and derivatives positioning, the risk-reward skew for Q3 more and more favors ETH outperformance over BTC.
