Ethereum (ETH) has outperformed Bitcoin (BTC) in May, with both price action and derivatives market activity signaling increased institutional interest in the world’s second-largest cryptocurrency.
As of early Thursday trading in Asia, Ether was trading at $2,770, marking a nearly 11% gain in May. This outpaced Bitcoin’s 5% rise for the same period, according to data from CoinDesk. The strong monthly performance has positioned Ethereum as a growing favorite among sophisticated investors, particularly those looking for long-term exposure to the expanding decentralized finance (DeFi) space.
One of the most telling signs of this shift is seen in the derivatives markets. Ethereum now dominates perpetual futures trading on OKX, one of the world’s top crypto exchanges. According to OKX’s Chief Commercial Officer Lennix Lai, ETH accounted for 45.2% of the platform’s perpetual futures trading volume over the past week, while Bitcoin represented just 38.1%.
This trend is not isolated to OKX. Other major derivatives platforms like Deribit have shown a similar rise in Ethereum-focused trading activity. This indicates a broader move by institutional investors who are increasingly allocating capital toward Ethereum.
“Ethereum is overshadowing Bitcoin on our platform,” Lai said. “The momentum is shifting as investors explore Ethereum’s potential to bridge traditional finance (TradFi) with decentralized applications.”
While Ethereum is stealing the spotlight, Bitcoin continues to hold strong, especially among long-term holders (LTHs). According to on-chain analytics firm Glassnode, institutions are still “buying the dips” during BTC’s price swings.
In fact, during recent market rallies, LTHs have realized over $930 million in profits per day, a number comparable to peak activity seen in previous bull markets. Interestingly, this profit-taking hasn’t led to a mass sell-off. Glassnode noted that the total supply held by LTHs has actually increased, a sign of growing conviction in Bitcoin’s long-term value.
“This dynamic shows that accumulation is currently stronger than selling pressure,” Glassnode analysts wrote. “It’s a rare pattern for late-stage bull markets.”
Despite short-term volatility and macro uncertainties, Ethereum is gaining ground due to both technical improvements and positive sentiment in the market. Analysts suggest that if ETH can break through the $2,800–$3,000 resistance zone, the token could spark a broader altcoin rally—often referred to as “altseason.”
This bullish outlook is supported by rising institutional demand and growing activity in Ethereum’s derivatives markets. The platform’s Pectra upgrade, launched earlier this year, has also helped address issues related to scalability and transaction costs, making it more attractive for developers and users alike.
“Macro uncertainties remain, but $3,000 ETH looks increasingly likely,” Lai added, pointing to strong fundamentals and momentum.
Meanwhile, the stablecoin market has hit an all-time high, with total market capitalization reaching $228 billion, marking a 17% increase so far in 2025, according to a report from CryptoQuant.
Ethereum remains a key platform for stablecoins, especially USDC, whose reserves on centralized exchanges have grown by 1.6x this year, reaching $8 billion. This has helped increase overall crypto trading liquidity, benefiting ETH and the broader market.
However, Tron has emerged as a major winner in the stablecoin race. Thanks to its fast transaction speeds and close ties with Tether, Tron recorded over $6 billion in net stablecoin inflows in May, leading all other blockchains. The platform also ranks second in daily active users and first in native total value locked (TVL) growth.
Ethereum and Solana, by contrast, saw stablecoin outflows and losses in bridge volume during the same period, highlighting some concerns over their ability to retain liquidity without new yield opportunities or major protocol upgrades.
The crypto market remains sensitive to global events, including geopolitical tensions and regulatory decisions. Recent public disputes involving figures like Donald Trump and Elon Musk have shown how fast sentiment can change.
Still, the overall outlook for Ethereum appears strong. With growing derivatives volume, rising institutional interest, and ongoing infrastructure upgrades, ETH is well-positioned to continue its upward momentum.
At the same time, Bitcoin maintains its role as a store of value, with long-term holders doubling down on their positions. The combination of these two forces—Ethereum’s structural growth and Bitcoin’s stability—continues to shape the direction of the broader crypto market.
A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5
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