# Ethereum Season

By [Elder Assets](https://paragraph.com/@elder-assets) · 2025-08-12

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**The theory of cryptocurrency market cycles teaches us that the flow of money follows a specific path: 1st Bitcoin, 2nd Ethereum, and 3rd Altcoins.**

Since the Halving in April 2024, it's been noticeable that financial volumes—often accompanied by price spikes—have been flowing into Bitcoin (BTC), resulting in higher prices and new all-time highs.

However, in recent weeks, it's become clear that the flow of capital is shifting direction. Ethereum has been gaining a lot of investor attention, perhaps due to its upgrades or perhaps because it’s riding the increasingly popular stablecoin narrative, with projects like Pendle, Ethena, and Aave.

On-chain data shows us the level of investment Ethereum (L1) is receiving. On August 10, 2025, ETH saw a net inflow of $1.02 billion, continuing an upward trend seen in previous bars, which was followed by a price increase. The asset rose from approximately $2,600 in May (when BTC hit a new all-time high) to $4,300.

![Source: SoSoValue](https://storage.googleapis.com/papyrus_images/9392b7219175e07262ee9b4e933838036724705cd52d532bd180d4127fe43449.png)

Source: SoSoValue

In comparison, the daily net inflow for BTC on the same date was $178.15 million.

![Source: SoSoValue](https://storage.googleapis.com/papyrus_images/d0d8c135f6ac0d62a0dd1a0b55ead9fdb2207a8effb5984698ebf42835036e7d.png)

Source: SoSoValue

It’s also easy to notice the rising inflow volume into ETH, while BTC, despite its high volume, has been showing sporadic spikes in trading that coincide with new price surges. Capital flow into Ethereum appears more stable and consistent, with less capital outflow and significantly higher inflows.

In addition to institutional flow over the past month, ETH has dominated net capital inflows across all networks—followed by some of its own Layer 2s. The same goes for stablecoin market cap dominance by network, with nearly $140 billion.

![Source: Artemis](https://storage.googleapis.com/papyrus_images/f1541e4376e2af4ca5c3ac2c1af20bf2c5aa78c0d42815cd1cfaceb9a65e970e.jpg)

Source: Artemis

![Source: Artemis](https://storage.googleapis.com/papyrus_images/0ca48d92cfd10e2f06a943a1abc013180724358065a040cf0e4e7e2882bd91cb.jpg)

Source: Artemis

At the same time, BTC's dominance over the rest of the crypto market has been declining. In recent weeks, its dominance broke below a downward trendline and an old upward channel, and it's now retesting a support region around 60%, which coincides with the 50-week moving average. If this level fails to hold, we could see a stronger move from ETH against BTC.

![](https://storage.googleapis.com/papyrus_images/7f6f522979b8b20001511c71ddf67d9b34c9d5266807042f11514c83bfc91602.png)

ETH compared to BTC has broken above the 50-moving average in a strong organic move and is now attempting to break a downward trendline.

![](https://storage.googleapis.com/papyrus_images/fc5f06c08d30c91f64dbda08f0b4b32ce752f629b48921bc8600ce3a99b196e3.png)

With this data, each investor can make their own decision, but this is certainly a moment to keep a close eye on ETH and its movements.

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Wallet address: 0x3C410D81059bbadf663Bb69C4c7dF60362c546c9

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*Originally published on [Elder Assets](https://paragraph.com/@elder-assets/ethereum-season)*