Bitcoin ended August with an increase of more than 25% compared to July, marking the best monthly result since November 2024. However, the capitalization growth of stablecoins was limited to just 0.5%, and these assets failed to stay above the $310 billion mark. This indicates a slow inflow of liquidity into the market. On-chain, the situation is even more telling: Bitcoin has risen by about 45% from its recent low, but there are practically no signs of demand in the spot market. Weak demand is evidenced by the neutral value of the 90-day CVD, as well as a decrease in stablecoin reserves on the Binance exchange by almost $7 billion from a cycle high above $50 billion. This creates a contradictory picture: Bitcoin's technical structure looks bullish, but liquidity and real demand remain sluggish. At the same time, rising open interest indicates an increase in speculative positions, making BTC vulnerable to mass liquidation of long positions if the $80,000 level turns out to be the ceiling, especially with the upcoming FOMC meeting.
However, a more significant signal is the growing liquidity of Ethereum compared to Bitcoin. Ethereum is capable of attracting liquidity both through speculative demand and practical use on the blockchain. Its position as a platform for stablecoins, tokenized assets, and DeFi generates additional demand for the asset. For example, the volume of stablecoins issued in euros on the Ethereum blockchain has grown by 347.3% over three years, reaching $848.1 million. Ethereum concentrates 69.4% of all stablecoins, surpassing all other blockchains combined by more than twice. Stablecoins on the Robinhood Chain have also exceeded the $1 billion mark, demonstrating strong demand for liquidity in the network. Moreover, Ethereum staking shows growing interest in the platform: the amount of staked ETH has reached another high 42.95 million ETH, or $105.96 billion, which accounts for 35.21% of the total ETH supply. All these factors together indicate a capital inflow into the Ethereum ecosystem: not only are traders increasing demand, but holders are locking significant amounts in the network, taking on long-term commitments.
This explains why the ETH/BTC ratio continues to rise. While Bitcoin faces the risk of a bull trap and weak spot demand, Ethereum is experiencing an influx of liquidity and capital. If this divergence persists, the ETH/BTC ratio may gain enough momentum to surpass the 0.031 mark. The main point if the inflow of liquidity into Ethereum continues, it could spread to the broader altcoin market. If Bitcoin continues to lose liquidity share to Ethereum, it could become a catalyst for altcoins to outperform BTC in the fourth quarter.