I noticed an interesting trend in the market in March — the Ethereum price showed clear dominance over Bitcoin, and it’s not just by chance. Capital was evidently rotating into altcoins, and the data confirms this.

Here’s what happened: while Bitcoin only increased by 1.83%, the Ethereum price soared by 7.12% over the month. BTC’s market capitalization even slightly declined by 0.43%, while ETH’s grew by 2.97%. This doesn’t look like a coincidence — it seems investors are deliberately shifting funds to where the short-term profit potential is higher.

Volatility also speaks for itself. The Ethereum price fluctuated with a volatility of 62.8%, whereas Bitcoin only at 49.8%. This means Ethereum reacts to liquidity changes much more sharply, making it appear as a more attractive asset for traders under current conditions. The correlation between them remained high — around 0.94, but Ethereum’s movements were noticeably more pronounced.

Blockchain data confirms this picture. The Ethereum price is supported by outflows from exchanges — people are holding ETH longer and are not rushing to sell. Plus, activity on the network is increasing, with addresses becoming more active. DeFi and real asset tokenization are gaining momentum, attracting more attention than Bitcoin’s narrative as a store of value.

The Coinbase premium gap, although still negative, showed signs of recovery — hinting at a return of demand from the US. If market conditions improve, the Ethereum price could further break away from the market leader. It’s interesting to observe this reorientation — it seems the era of Bitcoin’s absolute dominance is now transitioning into a more balanced phase.