Ethereum leads July surge as altcoins & stablecoins shine

The cryptocurrency market recorded a significant surge in July, with a 13.3% rise in total market capitalisation as reported by Binance Australia.

This growth was attributed to improved macroeconomic conditions, increased risk appetite, and a rise in institutional demand. The period also saw regulatory developments and increased adoption of digital assets by corporate treasuries, which contributed to Bitcoin reaching several new all-time highs and boosting confidence in altcoins and stablecoins.

Altcoin momentum

During July, there was a notable shift in market dynamics as altcoin dominance increased by nearly 10%, now making up 39.2% of the market. In contrast, Bitcoin’s market dominance fell by 5.2% to 60.6%, dropping below 60% for the first time since January. Ethereum was a leading driver of this change, with its own market share climbing over 25% to reach 11.8%. Other prominent altcoins, such as XRP and BNB, also posted considerable gains, bolstered by ecosystem developments and new partnerships.

“Investors are no longer just focused on Bitcoin as a singular hedge. We’re seeing them explore the broader market, driven by improved macroeconomic conditions, rising consumer confidence, and increased regulatory clarity globally. “Adoption narratives around tokenization and stablecoin infrastructure have also helped strengthen broader sentiment – particularly benefiting Ethereum and related DeFi assets, which rely heavily on stablecoin liquidity.”

This statement was made by James Quinn-Kumar, Director of Community Engagement for Binance Australia and New Zealand, who noted the maturation of the crypto asset class and rising mainstream adoption.

Institutional demand for Ethereum

Corporate adoption of Ethereum reached record levels in July, with 24 new firms adding the asset to their balance sheets. This resulted in a 127.7% increase in institutional holdings of Ethereum, now surpassing 2.7 million ETH. Concurrently, Ethereum’s price gained 50% in the month, and the asset led altcoin inflows, with spot ETH ETFs registering a 19-day streak of positive net inflows.

“The extraordinary corporate adoption of Ethereum in July signals a fundamental shift in how institutions view digital assets,” Mr Quinn-Kumar said. “Companies are now moving beyond a ‘store of value’ mindset and are actively leveraging Ethereum’s unique utility.”

Market participants increasingly favoured direct exposure to Ethereum’s features – such as staking yield and a deflationary monetary model – over more passive vehicles like ETFs, which further supported its performance during the period.

“Demand, liquidity, and strong price action has seen Ethereum emerge as one of the month’s best performing large-cap assets. However, with Ethereum historically exhibiting higher volatility than Bitcoin, and the space still maturing, the long-term durability and scale of these corporate ETH strategies remain to be seen,” Mr Quinn-Kumar said.

Australian trading trends

The Australian crypto community mirrored global patterns throughout July. Binance Australia data showed that, for the first time, Ethereum surpassed Bitcoin by number of traders on the platform. The five most-traded digital currencies on Binance Australia remained led by ETH, followed by BTC, XRP, Solana, and BNB.

A new entrant in the top ten was HBAR, which climbed nine spots following a 55% increase in price. This shift suggests traders are branching out beyond Bitcoin to seek fresh opportunities in other blockchain ecosystems.

Stablecoins and regulation

In July, stablecoins were given a boost by major regulatory developments in the United States. The passing of the GENIUS Act created a federal-level framework for fully reserved, anti-money laundering compliant stablecoins, mandating that they be backed one-to-one by cash or short-term Treasury securities. The new law prompted increased institutional adoption and led to higher activity from major global banks and payments companies, including pilot projects from JPMorgan and Citi and an expansion of stablecoin support from Visa.

On-chain stablecoin transfer volumes stayed near record highs, continuing to surpass those of Visa since late last year.

“Stablecoins have a growing dominance as a mainstream payment infrastructure,” Mr Quinn-Kumar said. “The passage of the GENIUS Act is a monumental step for the cryptocurrency industry, providing much-needed regulatory clarity that supports the continued growth of digital assets within the broader financial ecosystem. This law unlocks a new, more efficient, and more transparent financial infrastructure and a clear trajectory to mainstream adoption. “Looking ahead, the pace of capital rotation into crypto will depend on broader macroeconomic and liquidity conditions, alongside continued regulatory support. One thing is certain, the demand from both retail and institutional investors is undeniable.”