Ethereum outpaces Bitcoin in Q3 – Can ETH lead the next altcoin season?

The market is showing textbook signs of an altcoin cycle.

From a technical perspective, Bitcoin dominance has once again failed to break through the 60% level. Macro sentiment isn’t helping either, as macro FUD is beginning to resurface. Notably, the 30-year Treasury yield climbed to a 19-year peak due to inflation and deficit worries.

Normally, higher yields make Treasury bonds more attractive to investors, which means the return of capital to the safe haven decreases the amount of risk-taking capital in the crypto market, further pressuring Bitcoin dominance. This naturally sets the stage for the next potential surge in Ethereum’s favor.

As depicted by the chart above, Ethereum’s dominance is taking an opposite course in contrast to Bitcoin’s dominance. Specifically, ETH’s dominance in the crypto market has already crossed more than 13% this Q3, while Bitcoin’s dominance is increasing at a much slower pace, with the growth of around 1.5%.

Meanwhile, the same data is reflected in crypto asset prices via data provided by CoinGlass. According to the data, ETH price appreciated by over 20% in Q3 thus far, while Bitcoin returned around 9%. Therefore, it is possible to conclude that Ethereum [ETH] is substantially outperforming Bitcoin [BTC] on a quarterly basis, with more than 2x higher returns.