BTC market cap share has fallen from the high of 66% in July, indicating that funds are accelerating their flow into other sectors. The signals of increased on-chain activity are also becoming more apparent, all pointing to a possibility — ETH may have the opportunity to outperform BTC in a relative sense in 2026.

Data confirms this trend. The ETH/BTC ratio has increased by 3.59% this year, and although the increase seems moderate, it reflects a subtle shift in market expectations.

However, to sustain this advantage, two key factors must be considered. First, whether the demand for spot ETFs can continue to strengthen; second, whether protocol-level upgrades can proceed smoothly. Both conditions are indispensable — capital inflows need channels to support them, and technological progress must meet expectations. Otherwise, this rotation could be fleeting.