Ethereum emerged as a leader in the cryptocurrency rally in the third quarter, leaving bitcoin was left behind as capital flowed into altcoins, DeFi protocols and a new wave of tokenized assets, according to a report from CoinCecko.
The broader market added more than half a trillion dollars in value, its second consecutive quarter of significant growth, but this time, it wasn’t Bitcoin leading the charge. Instead, investors looked toward ethereum. and other large-cap tokens to fuel momentum, according to a CoinCecko report.
In early July, it looked like bitcoin would set the pace again. Its price hit new highs early in the quarter, driven by retail interest and institutional inflows through spot exchange-traded funds (ETFs).
But by September, the narrative had changed. As bitcoin cooled, ether caught fire.
A combination of ETF demand, growing interest in real-world tokenized assets, and renewed attention from corporate treasuries helped ETH reach a new all-time high before recovering.
That shift in focus was one of the defining trends of the quarter, CoinGecko analysts wrote.
Commercial activity, which had fallen for two consecutive quarters, recovered strongly. Spot volumes increased on 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 comeback 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, rebounded as the total value locked in lending and staking protocols rose alongside the rise of Ethereum, the report said.
A change in investor appetite
Behind the scenes, structural changes 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, with protocols like Ondo and Backed Finance gaining traction among investors looking to bridge traditional and decentralized finance.
Bitcoin also became less tied to legacy markets. Its price movement decoupled from the S&P 500 for the first time in more than a year. This could be read as a positive, according to the report, and proof that cryptocurrencies are becoming a more independent asset class. But it also reflects how investor attention has become fragmented, the report states.
Even the mining sector reflected this changing dynamic. Bitcoin hashrate hit record highs and miner-focused ETFs posted strong returns.
However, the focus was elsewhere: on emerging tokens, Ethereum momentum and the DeFi renaissance, according to the report.
