“ETH hit fresh highs while bitcoin cooled, as investors chased DeFi, altcoins, and tokenized assets. CoinGecko calls it a defining market shift.”, — write: www.coindesk.com
The broader market added over half a trillion dollars in value, its second straight quarter of meaningful growth, but this time, it wasn’t bitcoin leading the charge. Instead, investors looked to ethereum ETH$3,990.70 and other large-cap tokens to carry momentum forward, a report by CoinCecko found.
At the beginning of July, it looked like bitcoin would again set the pace. Its price hit new highs early in the quarter, buoyed by retail interest and institutional inflows through spot exchange-traded funds (ETFs).
But by September, the narrative had changed. While bitcoin cooled off, ether caught fire.
A combination of ETF demand, growing interest in tokenized real-world assets, and renewed attention from corporate treasuries helped ETH hit a fresh all-time high before settling back.
That shift in focus was one of the quarter’s defining trends, analysts at CoinGecko wrote.
Trading activity, which had fallen for two straight quarters, snapped back with strength. Spot volumes surged across centralized and decentralized exchanges. But the story wasn’t just about volume, it was about where that volume was going.
Meme coins, long considered fringe, made a dramatic return with tokens like M climbing the charts. Stablecoins like USDe gained ground, and lesser-known altcoins entered the top 30 by market cap. DeFi, which had faded from the spotlight in late 2024, mounted a comeback as total value locked in lending and staking protocols climbed alongside Ethereum’s rise, according to the report.
A shift in investor appetiteBehind the scenes, structural shifts were taking shape.
Bitcoin’s share of the total crypto market declined, a sign that investor appetite had moved toward other narratives. Ethereum gained ground, but so did categories that had struggled to break through in previous years, particularly tokenized assets.
A new generation of on-chain stocks and bonds began to take hold, and protocols like Ondo and Backed Finance gained traction with investors looking to bridge traditional and decentralized finance.
Bitcoin also became less tied to legacy markets. Its price movement is decoupled from the S&P 500 for the first time in over a year. That could be read as a positive, the report stated, and proof that crypto is becoming a more independent asset class. But it also reflects how investor attention has fragmented, the report stated.
Even the mining sector reflected this changing dynamic. Bitcoin’s hashrate hit record highs, and miner-focused ETFs posted strong returns.
However, the spotlight was elsewhere: on emerging tokens, Ethereum’s momentum, and the rebirth of DeFi, the report found.
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In a Q4 2025 outlook report, Coinbase Institutional says the cycle still skews positive — with liquidity, stablecoins and policy progress lifting the market.
- According to Coinbase Institutional’s fourth-quarter outlook, the cycle still skews positive into year-end, supported by liquidity conditions and policy progress — but near-term fragility remains.
- Coinbase says stablecoins and ETF plumbing are strengthening crypto’s rails; it favors bitcoin to lead, while ether looks constructive on cheaper, scaled block space.
- The report cautions about a potential November liquidity fade, missing US data and uncertainty around digital-asset treasury companies.
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