Ethereum (ETH) may gain a relative advantage over Bitcoin (BTC) in 2026 as BTC's market dominance has declined from a July peak of 66%, indicating increased capital rotation and on-chain activity. The ETH/BTC ratio has risen by 3.59% this year. Analysts suggest that sustained outperformance will depend on continued ETF demand, protocol upgrades such as Fusaka, Glamsterdam, and ERC-8004, and the broader macro liquidity environment.