Ethereum leads altcoin rally amid shifting crypto winds: Binance Research

The crypto market witnessed a historic shift in its dynamics in July 2025 as altcoins, led by Ethereum (ETH), outperformed, according to a Binance Research report. 

 

During the month, total cryptocurrency market capitalisation experienced a notable increase of 13.3 per cent, driven in part by Bitcoin (BTC) reaching new all-time highs of $123,000, Ethereum’s strong market performance due to rampant corporate adoption of ETH treasuries, growing digital asset treasury adoption, and increased regulatory clarity following the passage of major crypto bills on stablecoins.

 

"Market dynamics also shifted, with altcoins outperforming — led by ETH — supported by a record 19-day streak of positive net inflows into spot ETH ETFs," said the report.

 

 

This positive momentum, according to the report, was further supported by the passage of three key bills during US President Donald Trump’s 'Crypto Week', which provided crucial regulatory clarity around stablecoins and SEC-CFTC oversight. 

 

Further, altcoin and Bitcoin dominance reversed course in July; Bitcoin dominance fell 5.2 per cent to 60.6 per cent, while altcoin dominance rose 10 per cent to 39.2 per cent.

 

While Bitcoin had rallied earlier in the year and once again consolidated near all-time highs, July marked the first time this pause aligned with a broader shift in market positioning — supported by risk-on sentiment and improving macro conditions. READ FULL REPORT HERE

 

These, the report said, included the absence of major market shocks seen in prior months, supportive economic indicators, expectations of an approaching Fed rate-cut cycle, and growing regulatory clarity. Key drivers such as the passage of three crypto bills, progress on ETF approvals, and rising institutional interest in altcoin futures and corporate treasury allocations further fuelled the rotation. Adoption narratives around tokenisation and stablecoins also contributed to the strengthening sentiment.

 

Notably, in the month of July, the US passed the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act), creating the first federal framework for fully reserved, AML-compliant stablecoins backed 1:1 by cash or short-term Treasuries.

 

"This regulatory clarity accelerated institutional adoption, with JP Morgan expanding its deposit-token pilot and Citi exploring tokenised deposits for cross-border payments. Visa also highlighted stablecoins as complementary to its network and plans to expand support. On-chain stablecoin transfer volumes remained near their highs in July, continuing to outpace Visa since late 2024 and reinforcing their growing role as global payment rails and mainstream payment infrastructure," said the report.

 

Bitcoin’s market dominance declined to approximately 60 per cent, while Ethereum’s share surpassed 11.8 per cent, indicating a notable shift in asset allocation within the cryptocurrency market. Ethereum continues to attract substantial inflows into spot ETFs, achieving a record 19 consecutive days of positive net inflows. During the month, corporate ETH holdings rose 127.7 per cent to over 2.7M ETH, now comprising 46.5 per cent of ETF-held ETH, as 24 new companies added ETH to their balance sheets.

 

"The increase coincided with a 50 per cent rally in ETH, making it one of the month’s top-performing large-cap assets. This marks the strongest month on record for institutional treasury adoption, driven by staking yield, ETH’s deflationary mechanism, and growing preference for direct exposure over passive ETF vehicles."

 

Looking ahead, while July was largely positive, the report cautioned that uncertainty has started to resurface due to several recent developments. This includes the late-month resumption of initial tariffs by the Trump administration, the Fed’s somewhat cautious tone following its rate decision (holding rates steady with no clear signal on easing), and the need to fully assess the implications of the White House crypto report released on July 30.