BTC market cap share has been declining from the high of 66% in July. What does this signal mean? Signs of capital rotation are becoming more evident. At the same time, on-chain activity is also picking up, giving ETH an opportunity.

Many are speculating whether ETH will form a temporary relative advantage over BTC in 2026. From the data, the current ETH/BTC ratio has increased by 3.59% year-to-date, indicating that this trend may already be in its early stages.

However, to truly establish a sustained outperformance, several conditions are needed: first, whether the demand for ETFs can continue to stay hot; second, whether protocol upgrades can proceed as planned. These two factors will directly influence the subsequent direction. Therefore, relying solely on the decline in market cap share is not enough; the key still depends on the support of these fundamentals.