FameEX Hot Topics | Ether Triumphs After Crypto's 'Watershed Moment'

Last week, Ether (ETH) emerged as the top performer in the cryptocurrency market, with Bitwise analysts labeling it a “watershed moment.” This surge was driven by new US crypto laws and a market rotation, as the ETH/BTC ratio rose by 27%, causing Bitcoin dominance to fall by 6%. This shift in the market dynamics signaled a move of capital toward altcoins, further validating the growing interest in Ethereum.

Bitwise analysts André Dragosch and Ayush Tripathi highlighted that Ether’s rally aligns with the firm’s thesis of a diminishing valuation gap between ETH and Bitcoin. This momentum was assisted by favorable macroeconomic factors, including the bipartisan approval of the Genius Act in the Senate and the House passage of the Clarity Act, both signed into law last week. These regulatory measures have clarified oversight and set the stage for broader institutional adoption of digital assets, benefiting Ethereum in particular.

The Ethereum network, according to Bitwise, is uniquely positioned to capitalize on these changes. It currently hosts 50% of the stablecoin market cap, which crossed $140 billion on Tuesday, and 55% of tokenized asset value. Legislative clarity is expected to unlock further capital formation and product innovation within Ethereum’s native ecosystems, propelling its growth and adoption. The positive outlook is further supported by strong demand in derivative markets, with open interest across top exchanges increasing by $6 billion, and CME futures reaching record highs.

Ether’s exchange-traded products (ETPs) saw significant inflows, amounting to $2.1 billion, while Ether treasury holdings surged after The Ether Machine and Dynamix Corp SPAC deal added 400,000 ETH. Despite some concerns about modest volatility, the analysts noted that the fundamental strength of ETH remains intact. 

On-chain analysis platform iCrypto has also weighed in, predicting that Ether could gradually become a store of value similar to Bitcoin. This shift is supported by a steady influx of institutional capital, staking yields, and the upcoming launch of staking exchange-traded funds (ETFs). Notably, institutions have increased their holdings of ETH, with Bit Digital selling all of its Bitcoin holdings and investing $172 million to acquire over 100,000 ETH. Other institutional players like BTCS Inc. and BitMine Immersion Technologies have also significantly increased their ETH positions, signaling strong institutional confidence in Ether. As of July, 51 organizations have disclosed staked ETH holdings, representing 1.26% of Ether’s total supply, further emphasizing the growing institutional interest. The launch of Ether staking ETFs, expected by the end of Q3 2025, could attract an additional $20–30 billion annually, boosting the staking yield for Ethereum.

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