Ether's options market saw record trading volume of $1.32 billion on Monday, far above bitcoin's $879 million.
The ether market is experiencing record numbers for spot, futures and DeFi. Bitcoin is in the backseat for now.
Pays average price of $2,780 for the digital currency.
"Ether's spot-driven rally is primarily due to excitement around the impending EIP 1559 upgrade," one market expert said.
Ether's milestone comes surging trader interest in the leading smart-contracts blockchain.
The last time bitcoin traded at this level was almost two weeks ago, on April 17.
"The crypto narrative is shifting from bitcoin to ethereum," wrote FundStrat, which placed a $10K price target on ETH for this year.
Bitcoin’s dominance is less than half of the crypto market as assets like ether and binance coin captivate traders.
The largest cryptocurrency is down about 10% for the month to date, with the momentum shifting to altcoins.
The implication is the ongoing capital rotation out of bitcoin and into ether is likely to continue over the coming months.
Bitcoin’s stagnant market is due to investors continuing to explore other cryptocurrencies, says one trader.
JPMorgan points to better liquidity conditions as reasons behind ETH's outperformance relative to BTC, which could provide a tailwind.
ETH loans now make up 27% of Genesis’ loan book, as hedge funds get more comfortable with DeFi.
Bitcoin's rise this week comes after a weekend where its price went as low as $47,272.
The price move extends the second-largest cryptocurrency's stunning rally this year: It has tripled already in 2021, amid trader enthusiasm over growth in blockchain applications.