ETH dominance rebounded from 6.95% to 15%: What does this rebound mean?

Question

In the past few months, Ethereum dominance has experienced a dramatic rollercoaster. From a historic low of 6.95% in April, it rebounded to the current 13-15%—this isn’t just an ordinary technical rebound, but a turning point in market confidence.

How is dominance actually calculated?

Simply put, it’s a formula:

ETH market cap ÷ total crypto market cap × 100 = ETH dominance

For example, if the entire crypto market is worth $2 trillion and ETH is worth $200 billion, then dominance is 10%. This number intuitively reflects investors’ confidence in ETH—the higher the number, the more funds are concentrated in ETH and the lower the risk appetite; the lower the number, the more funds are chasing higher-risk small tokens.

Why was the drop to 6.95% in April the bottom?

A few overlapping reasons:

More competitors: Layer 1 chains and Layer 2 solutions diverted some of ETH’s dominance
Profit-taking: There was an overrun earlier, and whales were reducing their positions
Institutions hadn’t entered yet: Spot ETFs had just launched, and institutional funds hadn’t followed

But that bottom turned out to be a buying point—because critical events happened next.

Why the rebound in May? Three driving forces

First, Pectra upgrade launched

ETH completed a technical upgrade, solving scaling issues. This wasn’t just a code improvement, but a vote of confidence for the entire ecosystem.

Second, institutional spot ETFs approved

Traditional financial giants like BlackRock and Fidelity entered the scene. They don’t trade coins, they just allocate assets. But this means ETH became part of asset allocation, not just a speculative product.

Third, DeFi is still ETH’s stronghold

DeFi on ETH accounts for 60-63% of the total TVL (across the entire crypto market). Even as other chains compete fiercely, this position remains unshaken.

ETH vs BTC dominance: Where is the money flowing?

This is a key signal.

BTC dominance dropped from 56% to 52%, indicating funds are moving away from Bitcoin
ETH dominance rebounded from 6.95% to 13-15%, indicating those funds are flowing into Ethereum

This usually means: the market is starting to shift from “risk-off mode” (only BTC) to “risk-on mode” (willing to buy ETH and other coins).

Historically, every time this signal appears, it’s a precursor to altseason.

How to use this data for trading?

1. Find entry points

Dominance rebounding from the bottom + price rising = strong signal. It means it’s not just a dump—there’s real buying interest.

2. Adjust your positions

When dominance is at a historical low, you can moderately increase your ETH position—it’s like ETH has been unjustly punished by the market.

3. Predict altseason

Dominance drops while BTC is still rising? Consider rotating into small tokens at this time—the returns could be higher (but so is the risk).

4. Risk management

If dominance suddenly plummets and price also drops? It means whales are dumping—might be time to exit.

Don’t make these mistakes

❌ Thinking high dominance = ETH will rise

Dominance is a relative number. Even if ETH drops 30%, as long as other coins drop 40%, dominance will still go up.

❌ Watching dominance every day

Daily volatility is huge—it’s all noise. Only weekly or monthly charts matter.

❌ Looking at dominance without price

Both indicators must be used together. If price and dominance both rise, that’s real strength; if price rises but dominance drops, it means other coins are rising faster.

❌ Going all-in on altcoins just because dominance drops

It could just be short-term volatility. You have to see if it can break through long-term resistance levels like 20-30% before it’s a real trend.

What’s the current situation?

13-15% is not a peak, but a balance point.

On one hand, ETH fundamentals are solid—DeFi is still its territory, and Layer 2s are growing.

On the other hand, BTC dominance is still over 50%, meaning the market hasn’t fully shifted to risk-on mode.

This means:

Short term, there may be more ups and downs
Medium term, the probability of further upside is higher
Once BTC dominance falls below 50%, altseason may truly arrive

How to track this data?

TradingView, CoinMarketCap, and CoinGecko all update in real time.

Long-term investors: check weekly
Short-term traders: watch changes before and after major events
Professional traders: combine with on-chain data (gas fees, active addresses)

Summary: The rebound of ETH dominance from 6.95% to 15% reflects a shift from “institutions still on the sidelines” to “institutions beginning to allocate.” This trend may continue, but beware of pullbacks. The key is to use this indicator together with price, volume, and on-chain data to find real trading opportunities.