Solana Leads the Charge Again, With ETH, DOGE & ADA Seeing Profit-Taking Pullbacks

Ethereum Rallies Past $3,770 as Capital Shifts from Bitcoin to DeFi and Solana

Ethereum (ETH) climbed above $3,770 on Monday, extending its weekend gains as investors rotated capital out of bitcoin (BTC) and into altcoins and decentralized finance (DeFi) assets. While ETH remains nearly 25% below its all-time high, analysts say the gap presents a clear target for traders betting on a continued rally.

The broader crypto market showed signs of divergence: bitcoin held steady above $117,400, up just 1% in the past 24 hours, while several altcoins delivered sharper moves. Solana (SOL) led major gainers, jumping 8% to touch $203—its highest level in over four months—buoyed by enthusiasm surrounding Jito’s launch of the Block Assembly Marketplace (BAM).

The rally is part of a growing trend this month, where bitcoin’s dominance has leveled off and capital is flowing into high-beta sectors like DeFi. Uniswap and Aave, two leading DeFi protocols, have surged between 20% and 30% in the last seven days, driven by strong investor appetite and regulatory tailwinds from the proposed GENIUS Act.

“Ethereum is clearly benefiting from rotation flows,” said Jeff Mei, COO at BTSE. “While bitcoin is consolidating, ETH is catching bids from both institutional and retail investors, especially with ETH ETFs drawing in new capital.”

That rotation is also visible in fund allocation strategies. Spot Ethereum ETFs have seen a steady increase in inflows, as institutional investors look to rebalance portfolios and position for potential ETH outperformance.

“We expect ETH to outperform BTC over the next few weeks,” said Nassar Al Achkar, chief strategy officer at CoinW. “The market is beginning to price in a rally similar to bitcoin’s earlier move to $120,000.”

Outside of crypto, macroeconomic forces are adding fuel to the market. Bond yields remain elevated, and inflation breakeven rates—seen as a gauge of future inflation—have quietly hit multi-year highs, prompting increased risk appetite.

“There’s a shift in sentiment,” said Augustine Fan, head of insights at SignalPlus. “Traders are positioning for reflation, and crypto is riding that wave. With financial conditions still loose, momentum could carry further.”

Despite profit-taking in assets like XRP, DOGE, ADA, and BNB, the crypto market’s tone remains decisively risk-on, with Ethereum and Solana taking center stage as the next potential leaders of this cycle.