FameEX Hot Topics | Ether Rises as the Winner Following Crypto’s ‘Watershed Moment’

Last week, Ether (ETH) stood out as the top performer in the cryptocurrency market, with Bitwise analysts describing it as a “watershed moment.” This remarkable surge was fueled by recent developments in U.S. crypto regulations and a shift in market dynamics. The ETH/BTC ratio soared by 27%, leading to a 6% decline in Bitcoin dominance. This change in the market structure marked a notable capital shift toward altcoins, further emphasizing the growing interest in Ethereum and its potential as a leading cryptocurrency.

Bitwise analysts, André Dragosch and Ayush Tripathi, pointed out that the recent rally of Ether aligns with the firm’s view that the valuation gap between ETH and Bitcoin is narrowing. Several macroeconomic factors contributed to this momentum, including the bipartisan passage of the Genius Act in the Senate and the Clarity Act in the House, both of which were signed into law last week. These new regulations bring much-needed clarity to the crypto space, helping to lay the foundation for broader institutional adoption of digital assets, particularly benefiting Ethereum.

According to Bitwise, the Ethereum network is uniquely positioned to take advantage of these regulatory changes. Ethereum currently hosts 50% of the stablecoin market cap, which crossed $140 billion earlier this week, and holds 55% of the total value in tokenized assets. With clearer legislation, Ethereum is poised to see further capital influx and innovations within its ecosystem, driving growth and increased adoption. This optimistic outlook is also supported by strong demand in derivative markets, with open interest across major exchanges growing by $6 billion, and CME futures reaching record highs, signaling increasing confidence in Ethereum.

Ether’s exchange-traded products (ETPs) also experienced significant inflows, totaling $2.1 billion, while Ether treasury holdings surged following the addition of 400,000 ETH from The Ether Machine and Dynamix Corp SPAC deal. Despite concerns about mild volatility, analysts maintain that Ethereum’s fundamentals remain strong. 

iCrypto, an on-chain analysis platform, has suggested that Ether could gradually become a store of value, much like Bitcoin. This transition is supported by increasing institutional capital inflows, attractive staking yields, and the upcoming launch of staking exchange-traded funds (ETFs). Institutional adoption is already evident, with companies like Bit Digital selling all its Bitcoin holdings to purchase over 100,000 ETH, and others such as BTCS Inc. and BitMine Immersion Technologies significantly increasing their ETH positions. As of July, 51 organizations have disclosed staking ETH holdings, accounting for 1.26% of Ethereum’s total supply. The anticipated launch of Ether staking ETFs by the end of Q3 2025 could attract an additional $20–30 billion annually, further enhancing Ethereum’s staking yield and reinforcing its growing institutional appeal.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.