Despite the continued bearish action of the market, Ethereum shows signs of strength in certain areas. In a major milestone, the leading altcoin surpassed Bitcoin, the largest digital asset, in a key metric that defined the sector’s strength.
Ethereum dominates an important metric
A recent report by Leon Waidmann, market expert and head of the On-Chain Foundation, reveals that Ethereum dominates a crucial metric compared to Bitcoin. The recent turnaround highlights ETH’s growing momentum, likely fueled by the maturation of its ecosystem, increasing institutional attention, and growing network activity.
According to the market expert, Ethereum has overtaken Bitcoin in one of the most closely watched adoption metrics in the industry: the share of total supply held by Digital Asset Treasuries (DATs). As more corporate treasuries, investment firms, and blockchain-native businesses choose to hold ETH over BTC, the market is beginning to reflect a new narrative.
The data shows that ETH Treasury Companies currently hold 4.3% of the total supply, which is higher than BTC at 3.6%. ETH’s overtaking of BTC in this metric highlights a growing moment where Ethereum’s fundamental role in the cryptocurrency ecosystem is translating into real, quantifiable institutional preference.
In the opinion of experts, this surprising about-face is entirely logical. Indeed, ETH has more stakeholders with real operational demands than Bitcoin. These include Layer 2s, DeFi protocols, DAOs, foundations, treasury companies, governments experimenting with on-chain infrastructure, and countless Web3 projects being built on Ethereum. If this current trend continues to develop, Waidmann also anticipates that major stablecoin issuers will express interest in holding a strategic stake in the blockchain.
Engagement in the main blockchain is decreasing
Since the recent decline in the price of ETH, activity has seen a steady decline across the world. the networkan unusual change for an ecosystem that usually dominates the long-term operating market. Waidmann reported that weekly active wallet addresses in the ETH ecosystem have cooled after months of increased engagement.
As shown in the weekly Ethereum engagement chart, the number of active ETH wallet addresses stands at over 8.2 million, down from 20 million in June 2025. This decrease indicates a brief slowdown in user engagement with DeFi, NFTs and on-chain transactions.
Currently, network activity has decreased by over 60% and Layer 2 interaction continues to be maintained. However, overall ecosystem usage is clearly in a downward trend. Waidmann said this sharp drop is likely related to a slowdown in airdrop activity throughout Layer 2.
A significant portion of ETH is currently being withdrawn from crypto exchanges, signaling renewed conviction in the altcoin’s price prospects. ETH is being accumulated at a substantial rate. Over the last 30 days, 700,000 ETH has been withdrawn from exchanges. Merlijn the trader note that this type of supply shock never looks bullish until the chart catches up.
Featured image from Pngtree, chart from Tradingview.com
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