Ethereum Outperforms As Bitcoin Struggles

August was marked by two opposing signals in the crypto market. Ethereum reached an unprecedented peak of activity, confirming the growing interest of investors in its ecosystem. Conversely, Bitcoin suffered a brutal shock after the massive liquidation of 24,000 BTC by a single actor. This contrast is not just a technical divergence. It illustrates an ongoing rearrangement, between regulatory innovations, strategic repositioning of players, and the evolution of the balance of power between major assets.

Ethereum : activity records and regulatory turning point

In August, the Ethereum network crossed a technical and symbolic threshold by recording more than 1.8 million transactions in a single day, setting a record for the past year.

This activity peak occurs in a context where the Ethereum ecosystem seems to be entering a phase of strategic consolidation. The growing volume of transactions is accompanied by a notable phenomenon: the share of staked Ether now reaches nearly 30 % of the total supply, illustrating investors’ current preference for passive income rather than short-term selling.

Here are the main points noted :

• 1.8 million transactions processed on August 5 : an unprecedented level this year for the Ethereum network ;

• Nearly 30 % of the Ether supply is locked in staking, a strong signal of confidence from long-term holders ;

• The US SEC issued a statement on liquid staking, clarifying its legal position on this mechanism;

• The announcement fuels speculation about a potential Ethereum ETF with staking, an option that could sustainably change the balance of institutional investments in crypto.

This sequence of converging signals (increase in on-chain activity, massive staking, and the start of regulatory clarity) indicates a progressive repositioning of Ethereum as an institutionalized crypto asset, potentially eligible for structured financial products.

Unlike a purely speculative dynamic, these movements reflect a long-term commitment from holders, who now bet on regulated stability and performance rather than short-term volatility. If this trend continues, Ethereum could position itself as the preferred technological and economic support in a market seeking maturity.

Bitcoin : a brutal liquidation that shakes the market

On August 24, Bitcoin suffered a sudden and significant shock, caused by the sale of 24,000 BTC by a whale, valued at an estimated $2.7 billion. This move triggered a flash correction in the market, leading to the liquidation of about $500 million in leveraged positions in just a few minutes.

Such an event contributed to a decline in Bitcoin’s dominance, which dropped from 60 % to 57 % over August. This is a notable setback in a market where the balance between major assets is closely watched.

This relative decline of Bitcoin is accompanied by renewed attention on Ethereum, reinforced by recent regulatory signals. The QCP firm considers that if an Ethereum ETF incorporating staking were to be approved, it could fuel the sentiment that “ETH will soon outperform the others”, in other words that Ether could outperform Bitcoin in the coming months.

Bitcoin liquidity remains vulnerable to isolated moves, which could discourage some institutional investors. Furthermore, the decline in dominance could signal a new phase of rebalancing between major assets, where performance will no longer be dictated solely by ecosystem size, but by its ability to generate yield, adapt to new regulations, and attract institutional flows. If Ethereum confirms its current trajectory, the crypto landscape could enter a new era of much more sophisticated arbitrage.