Ethereum Gains 10.5% Market Share Amid $296.4M Inflows Post-Pectra Upgrade

Ethereum has experienced a significant surge in inflows, totaling $296.4 million last week, marking its strongest momentum since the US elections. This influx has been driven by the Pectra upgrade, which was implemented on May 7 and has significantly boosted institutional interest in Ethereum. The upgrade has enhanced the network's efficiency and user experience, making it more attractive to institutional investors. As a result, Ethereum's market share has increased to 10.5% of total digital assets, highlighting its growing dominance in the crypto market.
Institutional demand for Ethereum is further evidenced by the sustained inflows into Ethereum exchange-traded funds (ETFs). Ethereum ETFs have recorded a 15-day consecutive inflow streak, with over $281 million entering these funds in the past week alone. This trend contrasts sharply with Bitcoin ETFs, which saw outflows totaling $129 million during the same period. Analysts attribute this shift to heightened confidence in Ethereum’s long-term growth prospects, especially in the wake of regulatory clarity and technological upgrades. One analyst noted, “Ethereum 2025 is 2016 on steroids. Same consolidation, same shakeout, same reversal pattern. Back then, ETH rewrote the charts. Now? We’ve got stronger base, more capital, and ETF momentum.”
In contrast to Ethereum’s inflows, Bitcoin experienced its second consecutive week of outflows, losing $56.5 million as investors remain cautious amid ongoing Federal Reserve policy uncertainty. This divergence in investor sentiment highlights a broader hesitance in the market, with short-Bitcoin products also seeing outflows. Altcoins outside Ethereum showed mixed performance, with
(SUI) attracting modest inflows of $1.1 million, while XRP recorded its third consecutive week of outflows totaling $6.6 million. This suggests that while Ethereum is gaining traction, other digital assets are struggling to maintain investor interest.Ethereum’s market share growth highlights a shifting preference among institutional investors. With Ethereum now representing 10.5% of total
assets under management (AuM), the asset appears to be reclaiming a leadership role. This shift is particularly notable given the backdrop of macroeconomic headwinds and regulatory developments. Recent data shows Ethereum trading at $2,528, up 1.28% in the last 24 hours, reflecting steady investor confidence. The ongoing ETF inflows and network upgrades position Ethereum favorably as institutions prepare for a potential post-rate-hike environment.Ethereum’s sustained inflows and growing ETF momentum post-Pectra upgrade underscore its strengthening position in the crypto market, driven by enhanced network capabilities and institutional confidence. Conversely, Bitcoin’s continued outflows amid policy uncertainty highlight a cautious market stance. As Ethereum captures a larger share of digital asset AuM, investors should monitor Federal Reserve signals closely to gauge future market dynamics. Ethereum’s trajectory suggests it may remain a key beneficiary in the evolving crypto landscape.

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