Why Ethereum Could Be Ready to Outperform Bitcoin in 2026
Ethereum has underperformed Bitcoin since 2023, returning 160% compared to Bitcoin’s 457%. However, several factors suggest Ethereum could surpass Bitcoin in 2026. Signs include a declining Bitcoin dominance, indicating increased investor interest in altcoins like Ethereum, and a 3.59% year-to-date rise in the ETH/BTC ratio, aligning with historical altcoin rallies. Capital appears to be rotating into Ethereum, supported by growth in on-chain activity—Ethereum transactions grew 6.8% to 2.05 million in 2026, up 31% since mid-December. Experts cite catalysts such as ETF demand, Layer 2 adoption, fee-burning, restaking, DeFi activity, and major protocol upgrades, potentially positioning Ethereum for outperformance. Despite current gains—Ethereum’s 11% YTD vs. Bitcoin’s 8.5%—prediction markets remain skeptical about a broad altcoin rally before April 2026. Experts caution that sustained outperformance will require persistent macroeconomic and liquidity improvements.
