In a remarkable turn of events for the cryptocurrency market, Ethereum-based investment products have set a new record in 2024, attracting $2.2 billion in net inflows, surpassing the previous high of $2 billion reached in 2021, according to CoinShares. Last week alone, Ethereum products received an impressive $466.5 million in inflows, primarily driven by U.S.-based exchange-traded funds (ETFs). This surge reflects a significant shift in investor sentiment, with Ethereum pulling in $634 million globally while Bitcoin faced $457 million in outflows.
The broader digital asset market also saw a positive trend, with global net inflows of $270 million last week, bringing year-to-date inflows to over $37 billion. Ethereum’s strong performance was further bolstered by XRP’s historic gains. XRP funds recorded a staggering $95 million in weekly inflows—the highest ever for the asset—coinciding with a remarkable 69% price surge. This momentum propelled XRP to become the third-largest cryptocurrency by market capitalization, fueled by optimism surrounding a potential U.S. spot XRP ETF and Ripple’s development of its overcollateralized stablecoin, RLUSD.
While Ethereum and XRP thrived, Bitcoin encountered headwinds. The leading cryptocurrency experienced a 7% drop last week, briefly dipping below $96,000 before recovering slightly. U.S.-based spot Bitcoin ETFs saw outflows of $135.1 million, contributing to a 5% decline in Bitcoin’s market dominance over the past two weeks. Analysts are now suggesting the emergence of an “alt-season,” where altcoins like Ethereum and XRP are outperforming traditional leaders.
Ethereum’s price has surged by an impressive 47.15% over the past month, nearing $4,095 following the announcement of its ETF approval. Its total global assets under management have now reached $11 billion, bolstered by record inflows that included a single-day high of $332.9 million. In contrast, Bitcoin, despite its approach to the $100,000 mark, has struggled to maintain its dominance amid these shifting dynamics.
The overall cryptocurrency market has experienced substantial growth, with a 72% increase in capitalization since the U.S. elections, now valued at $3.43 trillion. This growth is largely attributed to sustained interest in U.S.-based ETFs and increasing enthusiasm for altcoins. The rapid rise of XRP, Ethereum’s record-breaking inflows, and potential shifts in regulatory attitudes are all indicative of evolving trends within the market.
As Ethereum and other altcoins like XRP gain traction, they are reshaping the dynamics of the cryptocurrency industry. Digital asset funds have enjoyed eight consecutive weeks of net inflows, reflecting ongoing investor interest and confidence. With altcoins increasingly coming into focus, the broader market signals a transformative shift where assets beyond Bitcoin are playing an increasingly prominent role.
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