- Ethereum’s market dominance has increased for the first time since March 2020.
- Ethereum lost 10% dominance level earlier this year, after reaching a peak of 20% in 2023.
- Memecoins, AI coins, and other altcoins had previously eaten into its market dominance.
- The recovery comes after Ethereum remained above $ 3,000 following a brief rally.
- Crypto-native companies, funds, and tech platforms have been buying Ethereum for the last couple of months.
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ETH Dominance Surges for the First Time Since March 2020
Ethereum’s market dominance has seen an upward trend for the first time since March 2020. This trend comes after ETH lost its 10% dominance level in early 2025. The crypto has been losing market dominance since 2023, when it peaked at 20%. The lowest level reached in 2025 was 8%.
The surge in the dominance looks similar to that in 2019-20.
Crypto analyst Rekt Capital had commented that the growth this time (2025-26) would not follow the previous pattern. At A2Z Cryptocurrencies, we assume the reason for this deviation would be due to changed market dynamics. The market did not have any corporate buyers or ETFs during the 2020 cycle. However, there are plenty around in 2025.
Causes For Recovery
Ethereum has several things working for it in the recent few months.
Growing Corporate Interest
Ethereum has seen growing interest from both crypto-native companies, such as WLFI, and ETFs, as well as other companies.
Recently, BlackRock was spotted buying the highest amount of Ethereum since its ETF launch in little over one year.
Possible Staking Approval for ETFs
Ethereum ETFs could soon get approval for staking, which would allow them an additional yield of 2.5% to 4% per annum. Previously, these approvals were not granted during launch by former SEC Chair Gary Gensler.
However, now that the SEC is being headed by a pro-crypto chief, Paul Atkins, it may see approval soon. Lately, the SEC has fixed several burning issues in the crypto markets:
- Memecoin deregulation.
- SEC vs XRP Case
- Proposing XRP as a method for intra-government use in the USA
What Shadowed Ethereum’s Dominance in the Past?
The Memecoin Supercycle and the Bitcoin mania overshadowed Ethereum’s market dominance in the past.
The memecoin supercycle took away retail investors from Ethereum. During the early stages of the cycle, i.e., in February 2025, Solana memecoins showed flash rallies with some coins giving up to 10,000% returns in little over a year. A few examples were WIF, POPCAT, and PEPE.
The Bitcoin rallies, on the other hand, took away corporate interest from Ethereum. Bitcoin ETFs got recognition almost 6 months prior to Ethereum and had a good head start. They absorbed all the liquidity that the market had to offer. When the Ethereum ETFs launched, not much interest was left. Further, Ethereum ETFs had no staking options that gave an additional return (up to 4%).
Disclaimer: Crypto markets are volatile in nature. All articles in this website are informational and are not financial advice. Please consult your financial adviser before investing.
