In May, Ethereum (ETH) has significantly outperformed Bitcoin (BTC), with the price of ETH rising approximately 11% to $2,770, compared to a 5% increase for BTC. This momentum has led to ETH overtaking BTC in trading volume on the OKX perpetual futures market, signaling a growing institutional appetite for Ethereum and its role in bridging decentralized finance (DeFi) and traditional finance (TradFi).
Ethereum Outshines Bitcoin in May
As Asian markets opened on Thursday, Ethereum (ETH) was trading at $2,770, reflecting a robust performance throughout the month. This surge in price is particularly notable in the derivatives markets, where it has eclipsed Bitcoin (BTC) — indicating increasing institutional interest in the structural growth potential of Ethereum.
Market data from CoinDesk reveals that Ethereum has outstripped Bitcoin this month, with a near 11% increase for ETH compared to a modest 5% rise for BTC. This divergence can be attributed in part to a growing demand for institutional trading in Ethereum. Lennix Lai, the commercial director at crypto platform OKX, stated in a recent interview, “Sophisticated investors are increasingly betting on ETH, which is evident in its activity on the derivatives market.”
“Ethereum has outperformed BTC on our perpetual futures market, with ETH accounting for 45.2% of transaction volume over the past week, compared to BTC’s 38.1%,” Lai added. This trend aligns with findings from other major derivatives platforms like Deribit, suggesting a significant shift in how institutional players are allocating capital within the crypto space.
Nevertheless, the interest in Bitcoin has not diminished. A recent report from on-chain analytics firm Glassnode indicates that despite recent price volatility for Bitcoin, institutions are actively “buying the dips.”
Glassnode’s analysis showed that long-term holders (LTH) realized over $930 million in profits per day during recent BTC price rallies, with the level of distribution matching those observed during previous market cycle peaks. Remarkably, the holdings by these LTHs have actually increased rather than decreased.
“This dynamic highlights that maturation and accumulation pressures outweigh distribution behavior,” noted Glassnode analysts, indicating that this is “very atypical for advanced bull markets.” While both leading cryptocurrencies remain vulnerable to geopolitical risks and unexpected “black swan” events, such as the recent public dispute between former U.S. President Donald Trump and tech billionaire Elon Musk, institutional conviction appears to remain intact.
Ethereum is increasingly seen as a preferred vehicle for accessing regulated DeFi opportunities, while Bitcoin continues to benefit from long-term institutional accumulation, often through exchange-traded funds (ETFs). “Macroeconomic uncertainties persist, but $3,000 ETH seems increasingly probable,” concluded Lai, providing a bullish outlook for Ethereum’s short-term price potential.
Surge in Stablecoins: Tron Takes the Lead
The stablecoin market is experiencing significant growth, recently hitting a record market capitalization of $228 billion, a 17% increase since the beginning of the year, according to a new report from CryptoQuant. This rise in dollar-pegged liquidity reflects renewed investor confidence, bolstered by factors such as the IPO of stablecoin issuer Circle, rising yields from DeFi protocols, and improved regulatory clarity in the U.S.
CryptoQuant reports that the volume of stablecoins on centralized exchanges has also reached record levels, supporting cryptocurrency trading liquidity. Their data indicates that the total value of ERC20 stablecoins (those built on Ethereum) on centralized exchanges has surged to a record $50 billion.
Notably, much of the growth in exchange stablecoin reserves is attributed to a 1.6-fold increase in USDC reserves on these platforms, reaching $8 billion so far in 2025.
Among blockchain protocols benefiting from these inflows of stablecoins, Tron has emerged as a leader. The swift transaction finality and deep integrations of Tron with major stablecoin issuers like Tether have made it a “liquidity magnet.” Presto Research recently echoed these findings, revealing that Tron recorded over $6 billion in net stablecoin inflows just in May, surpassing all other chains and securing it the second position in terms of daily active users, just behind Solana.
Tron has also led in terms of growth in native total value locked (TVL). In contrast, Ethereum and Solana have both faced significant outflows of stablecoins and declines in bridge volume during the same period, according to Presto data. This suggests a potential lack of new yield opportunities or major protocol upgrades enticing enough to retain or attract new stablecoin capital on these networks.
Data from Presto confirms a broader trend: institutional and retail capital is increasingly gravitating toward alternative Layer 1 and Layer 2 solutions such as Base, Solana (which, despite recent outflows, still attracts users), and Tron. Common denominators among these favored chains appear to be faster execution speeds, more dynamic and scalable ecosystems, and, in some instances, more substantial incentive programs.
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