When Bitcoin's Act Concludes, Ethereum's Part Begins

RugResistant · 2025-12-26T21:01:43+00:00

The essay discusses the current cryptocurrency market cycle, highlighting the shift in altcoin market cap contribution from 66% in previous cycles to only 35% now. It outlines three key forces influencing this trend: favorable regulations for altcoins, increasing capital flow to Ethereum, and significant market signals indicating institutional interest. The future suggests an altcoin revival as Bitcoin leads the market, driven by these developments.

RugResistant

2025-12-26 21:01:43

Abstract generation in progress

History rarely repeats, but it does rhyme—and right now, we’re witnessing the second verse of a familiar melody. The current cycle is painting a fascinating picture: altcoins have driven only 35% of market cap growth so far, a stark contrast to previous chapters where they dominated.

The Pattern Beneath the Numbers

Look at the data across cycles:

2015-2018: Altcoins accounted for 66% of total market cap expansion
2018-2021: They still drove 55% of growth
Current cycle (2025): Only 35% contribution

This divergence tells us something crucial—we’re still in Bitcoin’s primary phase. The digital asset is currently priced at $87.72K, establishing its dominance. But the numbers suggest what comes next has barely started.

Three Forces Reshaping the Landscape

Regulatory winds at altcoins’ back: The incoming administration has catalyzed significant movement. The proposed “Genius Act” and “Clarity Act” are systematically dismantling regulatory barriers that previously sheltered Bitcoin’s advantage. Stablecoins and alternative tokens now enjoy clearer pathways, leveling the playing field.

Capital looking for new homes: The $260 billion stablecoin market tells part of the story—54% is anchored on Ethereum. More striking: 73% of tokenized government bonds live on the same network. Traditional Wall Street capital, RWA projects, and tokenized equities are flowing steadily into the Ethereum ecosystem. Ethereum currently trades at $2.94K, reflecting its expanding utility as the leading infrastructure layer.

The technical rhyme: Ethereum priced in Bitcoin terms has surged 103% since April 2025’s lows. This isn’t random noise—it’s a market signal that the institutional focus is shifting.

The Next Act

Bitcoin leads the market upward; altcoins, particularly Ethereum, capture the extended gains. This cycle appears primed to follow the rhythm. The stage is being set, the capital is preparing to flow, and the regulatory guardrails are finally being installed. What rhymes with the second phase of bull markets? An altcoin renaissance—and the foundation is already in place.

BTC0,17%

ETH0,24%

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.