- ETH ETFs saw $25.2M in inflows as BTC funds lost $1.4B, signaling rising institutional demand.
- Ethereum leads stablecoin activity with $36.7B USDC on mainnet and $10B on Layer 2s.
- ETH’s price cycle may repeat as Q3 nears, while BTC faces historical seasonal weakness.
Ethereum has gained renewed market attention as several key metrics suggest it could outperform Bitcoin in the third quarter of 2025. With its strong role in digital finance and growing institutional adoption, ETH is showing a pattern that could position it ahead of BTC in the coming months.
Institutional Flows Show Growing Preference for Ethereum
Ethereum’s role as a foundation for stablecoins and smart contracts continues to grow. With over $36.7 billion USDC hosted on its mainnet, Ethereum is the dominant network for stablecoin liquidity.
Circle has also issued $10 billion more across Ethereum’s Layer 2 networks, reinforcing ETH’s technical strength and adoption. Recent ETF inflows also reflect sustained institutional interest.
Over eight of the last ten sessions, ETH-based ETFs recorded positive flows, totaling $25.2 million. While modest, this is in contrast to Bitcoin-based funds, which lost over $1.4 billion in the same period. Ethereum is leading in stablecoin supply growth and bridge flows.
Market Patterns Point Toward Ethereum Advantage in Q3
Ethereum has risen nearly 90% since April, compared to a slower climb by Bitcoin. At $2,520.99, ETH remains below its peak, but analysts are noting familiar cycles that could bring another wave.
Henry, a crypto market observer, noted on X that “consolidation, accumulation, and expansion” are repeating, which could send ETH toward $5,000 by 2026. Bitcoin, on the other hand, faces seasonal weakness. Since 2013, its Q3 average return has been only 6.03%, while Q4 usually performs better.
With BTC trading near all-time highs, analysts warn that excessive optimism could lead to a pullback. As capital rotates and volume trends shift, Ethereum could benefit from reduced Bitcoin momentum. ETF flows, stablecoin infrastructure, and historical cycle patterns are aligning in ETH’s favor heading into the third quarter.
