PrimeXBT Insights: Will Ethereum outperform Bitcoin in Q3?
Bitcoin has been a dominant force in crypto in 2025, with the world’s largest cryptocurrency rising to a record high of $112 on May 22.
However, as attention turns to the second half of the year, there are signs that Ethereum could outperform.
Ethereum has underperformed Bitcoin so far in 2025.
While Bitcoin rose to a record high in May and is just 1% away from that record high, Ethereum fell 30% across the first few months of 20225, dropping to a multi-year low.
The price still trades some 30% below its 2024 high and 43% below its record high.
After months of underperformance, could ETH stage a comeback and outperform BTC in Q3?
For traders looking to engage with both BTC and ETH, a leading multi-asset broker, PrimeXBT, has recently expanded its crypto services into South Africa under FSCA license, bringing crypto and traditional markets together in a regulated environment.
Pectra upgrade sparked ETH’s recovery
Ethereum has rebounded 45% over the past 30 days compared to a 14% rise in Bitcoin. The recent rollout of the Pectra upgrade in May has been a key catalyst in changing ETH’s fortunes.
The upgrade, which included several changes to the Ethereum protocol, brought with it faster, cheaper, and more efficient transactions, addressing critical weaknesses.
Not only has the price surged since the upgrade, but Pectra has also impacted the network’s ecosystem.
The improved conviction is showing up in Ethereum-related investment products.
ETH Institutional demand soars
Ethereum ETFs recorded a seventeenth straight day of net inflows on Tuesday and have booked five consecutive weeks of inflows totaling over $1 billion.
This marks the strongest run of inflows since the US election last November and represents a significant shift among investors.
On the other hand, while Bitcoin ETFs have enjoyed inflows until recently, the trend has been changing.
Over the previous two weeks, net outflows have been recorded.
That said, BTC ETFs are showing signs of rebounding this week.
It remains to be seen what happens next and whether the divergence that started to develop between the two ETF funds will take further hold.
Why is interest in Ethereum rising?
Bitcoin is widely considered a store of value.
However, institutional interest in Ethereum is growing as it sheds its speculative reputation, with investors viewing it as an infrastructure for the next generation of financial systems instead.
Ethereum’s role in powering stablecoin transfers and network fees are a reason to hold it long term.
More activity on the network means more demand for ETH.
Most stablecoins live on the Ethereum network.
As stablecoins gain mainstream traction, household names such as Visa and Stripe are now moving into tokenised dollar payments, and Ethereum is becoming more prominent.
Staking is another key element.
ETF providers like Invesco and Galaxy have filed to allow staking rewards inside ETH ETFs.
The Securities and Exchange Commission (SEC) is expected to guide staking mechanisms later this year, which could boost Ethereum’s appeal to institutional investors.
If staking is approved for spot ETH, new revenue streams could be unlocked.
What could hold Ethereum back?
Bitcoin is often considered a store of value and “digital gold”.
Therefore, should the macroeconomic outlook deteriorate, this could boost demand for BTC over ETH.
While US economic data is broadly holding up in the face of Trump’s trade tariff turmoil, should hard data start to show a significant slowdown and raise recession worries, Bitcoin could outperform its peers.
Trading crypto with PrimeXBT in South Africa
After a challenging start to the year, Ethereum has shown signs of revival, thanks to the successful Pectra upgrade, surging institutional inflows, and growing adoption in financial infrastructure, which could see ETH outperform BTC in the coming quarter.
However, Bitcoin’s status as digital gold and a hedge against uncertainty could keep the world’s largest cryptocurrency in favour.
PrimeXBT, a trusted multi-asset broker, has expanded its crypto services into South Africa, providing traders with ability to respond to market movements in ETH and BTC as they arise.
As one of the few FSCA-licensed brokers offering both crypto and traditional financial markets in one place, PrimeXBT provides South African clients with a secure and regulated access to global markets.
Clients can trade Crypto Futures and CFDs across a wide range of instruments, including crypto, stocks, indices, commodities, and forex — all from accounts denominated in either fiat or crypto.
The platform also features an integrated exchange, enabling crypto-to-crypto and crypto-to-fiat conversions, as well as a secure wallet for managing funds in one place.
Traders can use USD or crypto as margin, and take long or short positions to respond to market movements in either direction.
Markets are available on both the industry-standard MT5 platform and PrimeXBT’s native platform, which provides advanced charting tools and built-in risk management features.
Furthermore, deposits and withdrawals are supported in both crypto and fiat, including BTC, ETH, USDT, USDC, and USD, as well as local payment methods in ZAR for added convenience in South Africa.
PrimeXBT delivers a unified, all-in-one trading experience tailored to local needs.
With its secure, FSCA-regulated setup, it is an excellent choice for new and experienced traders seeking exposure to crypto or traditional markets.
Click here to start trading with PrimeXBT South Africa.
Disclaimer
The content provided here is for informational purposes only and is not intended as personal investment advice and does not constitute a solicitation or invitation to engage in any financial transactions, investments, or related activities.
Past performance is not a reliable indicator of future results.
The financial products offered by the Company are complex and come with a high risk of losing money rapidly due to leverage.
These products may not be suitable for all investors.
Before engaging, you should consider whether you understand how these leveraged products work and whether you can afford the high risk of losing your money.
The Company does not accept clients from the Restricted Jurisdictions as indicated on its website.
PrimeXBT (PTY) LTD is an authorised financial services provider in South Africa with licence number 45697.
PrimeXBT (PTY) LTD acts as an intermediary between the investor and the market maker which is the counterparty to the products purchased through PrimeXBT.
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