Ethereum-Fueled Rally Pushes Global Crypto Market To All-Time High

Cryptocurrency prices have surged once more, driven by Ethereum's technological advancements, altcoin surges, and increased leverage. Investors are shifting their focus from Bitcoin to Ethereum and smaller coins, propelling the market upward for the seventh consecutive day. The crypto market is experiencing a wave of green as capital flows into Ethereum and mid-cap altcoins.

The total market capitalisation of the global crypto market soared to a new all-time high of $3.92 trillion last week, following a pivotal moment in US regulatory progress, with the House of Representatives passing three major crypto bills during what is being referred to as "Crypto Week", according to Simon Peters, crypto market analyst at eToro.

The surge was driven largely by altcoins, which added an impressive $200 billion to their market capitalisation and saw their dominance relative to Bitcoin increase by 6%. This shift has raised speculation that a new alt-season may be underway, as investor sentiment continues to strengthen beyond the traditional market leader.

One of the most notable developments was the record-breaking inflows into Ethereum spot ETFs, which saw a total of $2.18 billion in institutional investments over the week. The single biggest day was Wednesday, which recorded $726.6 million in inflows – a clear indicator of intensifying institutional interest in the second-largest cryptoasset.

"The passing of these bills could mark a turning point for crypto regulation and investor confidence, especially in altcoins with ties to the U.S. market," said Peters. "As Bitcoin dominance declines, investors are beginning to explore opportunities further along the risk curve."

The derivatives sector is witnessing heightened activity. Open interest in perpetual contracts increased by 7.78% in just one day, reaching $815.6 billion. Bitcoin liquidations amounted to $35.34 million, primarily affecting long positions, indicating traders may be overextending themselves. Funding rates rose by 15.83%, hitting 0.0123% within 24 hours.

Ethereum's Institutional Attraction

Ethereum isn't merely rising; it's attracting significant institutional attention. Over the past day, its market cap grew by 3.65%. The protocol's zkEVM roadmap aims for ultra-fast block finality under 10 seconds by 2026. Notably, ETH ETFs now manage $15.72 billion in assets, marking a 30% increase month-over-month.

Bitcoin's dominance in the market is waning, dropping to 59.98% this week—a decrease of 1.3% from last week. This decline provides an opportunity for altcoins to gain prominence. Ethereum saw a 25.6% increase over the past seven days, while Chainlink rose by 26.85%. Conflux experienced a remarkable surge of 197.9% in one month due to China's RMB stablecoin pilot.

Altcoins' Rising Influence

Risk appetite is swiftly returning, especially with new US crypto regulations like the GENIUS Act supporting the altcoin narrative. Ethereum supports over half of the world's stablecoins and its upcoming major upgrade, Pectra, scheduled for Q4 2025, will reduce validator requirements to just 1 ETH—potentially attracting millions of new stakers.

Kosta has been involved in the cryptocurrency industry for more than four years and aims to provide balanced coverage of events and developments within the crypto space from a neutral standpoint.

The long-to-short liquidation ratio stands at 0.92, indicating squeezed leverage on both sides of trades. If current momentum falters, volatility could rebound sharply.

With legislative clarity improving and institutional interest rising, the crypto market appears to be entering a new phase of growth and diversification.