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Dogecoin jumps nearly 9% as buyers push price out of recent downtrend

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The rally in meme coins like Dogecoin and Pepe reflects renewed speculative interest as broader crypto markets remain mixed.

Why Ethereum Could Be Ready to Outperform Bitcoin in 2026

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In brief

  • Bitcoin’s share of the crypto market has slipped from midyear highs, signaling a rotation of investor interest toward Ethereum and other large-cap tokens.
  • Ethereum is showing relative strength against Bitcoin, alongside rising network usage and transaction growth.
  • Analysts say any sustained outperformance will depend on follow-through from ETFs, protocol upgrades and broader macro liquidity conditions.

Ethereum may be poised to end years of lagging performance and finally outrun Bitcoin in 2026, driven by a regulatory overhaul and a confluence of key on-chain and market metrics.

Ethereum’s bull run since 2023 has yielded 160%, less than half of Bitcoin’s staggering 457% return, according to CoinGecko data. The difference in gains highlights Ethereum’s muted performance over the years despite improving market conditions.

But several catalysts suggest that the outlook could change.

Catalysts for Ethereum

The first signal is a clear market rotation highlighted by a decline in Bitcoin’s dominance.

Bitcoin dominance, or the coin’s share of the total market, peaked in July at 66% and has since trended lower, suggesting diversification of investor interest into altcoins, including Ethereum.

The second signal can be viewed through the ETH/BTC ratio, which measures Ethereum’s performance relative to Bitcoin. It has risen 3.59% year-to-date, according to market data.

“A rising ETH/BTC ratio, coupled with stagnating Bitcoin dominance, has historically been associated with the start of an altcoin season,” Jimmy Xue, co-founder and COO of the quantitative yield protocol Axis, told Decrypt. “Analysts observe that this rotation is being fueled by investors seeking higher ‘beta’ exposure in the Ethereum ecosystem following the stability of the Bitcoin ETF market.”

The setup suggests “capital rotation rather than Bitcoin weakness” and “often precedes selective Ethereum and large-cap altcoin rallies,” Shivam Thakral, CEO of Indian exchange BuyUCoin, told Decrypt. 

However, prediction markets reflect skepticism about an imminent, broad-based altcoin rally. Users on Myriad assign only a 19% chance that an alt season will occur before April 2026. (Disclaimer: Myriad is owned by Decrypt’s parent company Dastan.)

Still, the rotation of capital and investor interest is underpinned by strengthening fundamentals. The total transaction count on the Ethereum network has grown 6.8% to 2.05 million in 2026, spiking 31% since mid-December, highlighting increased adoption.

Will these conditions translate into short-term outperformance for Ethereum? Both experts see a path, though they emphasize different catalysts.

Thakral points to increased demand from exchange-traded funds, Layer 2 adoption, fee burn dynamics, restaking growth, and renewed DeFi activity. Xue looks to successful protocol upgrades such as Fusaka, the Glamsterdam fork, and ERC-8004, which could position Ethereum as the primary settlement layer for the new “Agentic AI” economy.

Although Ethereum’s year-to-date return of 11% already outperforms Bitcoin’s 8.5%, Thakral said that these moves are likely cyclical rather than a regime shift, at least without sustained support from improving macroeconomic and liquidity conditions.

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Paxos’ Asset Base Grew 450% in 2025

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Fueled by PYUSD and PAXG, Paxos’ total assets are up more than fivefold over the last 365 days.

Paxos, the asset issuer and tokenization infrastructure platform, has recorded substantial growth under the Trump administration, with its total asset market cap surging by more than 450% since January 2025.

Over the last year, Paxos’ total asset valuation has grown to $6.8 billion from just $1.2 billion in January 2025, according to TokenTerminal.

Paxos Circulating Asset Valuation – TokenTerminal

PayPal’s stablecoin, PYUSD, issued by Paxos, accounts for more than 50% of the growth, rising from roughly $500 million in January 2025 to $3.6 billion today.

Paxos Gold, or PAXG, is also carrying its weight thanks to gold’s massive run in 2025, resulting in PAXG growing from a $500 million market capitalization to $1.8 billion currently.

While new mints of PAXG have boosted the asset’s valuation, the gold-backed token is up 72% over the last year, helping drive its total valuation higher.

BitMine Stakes 186K More ETH, Total Reaches 1.5M Worth $5.13B

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Ethereum digital asset treasury (DAT) BitMine has just staked another huge batch of Ether, bringing its total amount staked to over 1.5 million ETH. 

Tom Lee-chaired BitMine Immersion Technologies (BMNR) added 186,560 ETH (worth around $625 million) to the “Beacon Depositor” address, reported Lookonchain on Wednesday.

This brings the total amount staked by the world’s largest Ethereum (ETH) DAT to 1,530,784 ETH, worth approximately $5.13 billion, equating to 4% of the total 36 million ETH staked on the Beacon Chain.

This share could still increase as the company holds a total of just over 4 million ETH, of which 37% has now been staked. 

The move comes just a few days after it crossed the 1 million milestone in staked Ether. 

On Monday, the firm reported that it held 4,167,768 ETH, 192 Bitcoin (BTC), almost a billion dollars in cash, and a $23 million stake in Eightco Holdings.

Meanwhile, the Ethereum staking validator entry queue has skyrocketed to 2.3 million ETH, its highest level since August 2023. 

Bitmine continues to stack and stake Ether. Source: Arkham Intelligence

Bitmine stock rises in after-hours trading

BitMine stock climbed 3.8% in after-hours trading on Tuesday to reach $32.35, according to Google Finance. 

The company has had a solid start to the year, with share prices gaining 11.5% year to date in tandem with the broader rise in crypto markets. 

Related: Crypto treasury buying outpaces Bitcoin supply at 3-to-1

Fundstrat’s Tom Lee, who chairs the firm, remains bullish on Ether and crypto in 2026 following a tumultuous end to 2025. 

“We continue to view the leverage reset post October 10th, 2025, as akin to the ‘mini crypto winter.’ 2026 is the year crypto prices recover and with stronger gains in 2027-2028,” said Lee on Monday. 

ETH price surges 7% on the day

Meanwhile, the price of Ether has just seen its largest daily gain in 2026, rising 7% over the past 24 hours. 

The asset tapped $3,375, its highest level since Dec. 10, on Coinbase in early trading on Wednesday, according to TradingView.

Ether is approaching the upper bands of a two-month sideways channel and needs to break resistance above $3,400 to see any further meaningful momentum. 

Ether price hits resistance at the 200-day EMA. Source: TradingView

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