Ethereum News Today: Crypto Market Hits $4.15 Trillion High Amid Bullish Sentiment and Volatility Risks

The digital asset market reached a new all-time high in market capitalization on Monday, touching nearly $4.15 trillion, according to CoinMarketCap. This surpassed the previous record set in July and marked a significant milestone for the crypto industry. Although the market cap has since pulled back to around $3.96 trillion as of the time of writing, overall sentiment remains bullish, with expectations of further gains in the near term [1].

Leading the rally were large-cap cryptocurrencies, particularly Bitcoin (BTC) and Ethereum (ETH). Bitcoin approached its all-time high of $123,091, reaching $122,321 before retracing slightly. Ethereum, however, saw more dramatic gains, crossing the $4,000 mark over the weekend and reaching a high of $4,351.7. This brought its value up more than 45% in the last month and nearly 18% in the past week [1].

Ethereum’s rally is attributed to growing institutional interest. Publicly traded companies have increasingly added ETH to their corporate treasuries, viewing it as a superior alternative to Bitcoin in terms of yield generation. Data from strategicethreserve.xyz shows that 64 corporations now hold around 3.49 million ETH, worth approximately $15.05 billion, which accounts for 2.89% of the total circulating supply [1].

Despite Ethereum’s strong performance, Bitcoin continues to attract institutional inflows. A major institutional player acquired 21,021 BTC in July, valued at roughly $2.46 billion, while other large entities added 26,700 BTC to their holdings. As a result, public and private companies now hold around 1.35 million BTC, or about 6% of the total supply [1].

Analysts have expressed optimism about Ethereum’s potential for further gains. Ted Pillows, a crypto entrepreneur and investor, tweeted that the ETH breakout is underway, exactly as he had predicted, and that a new all-time high for Ethereum is likely within days [1].

However, not all voices are bullish. Andrei Grachev, Managing Partner at DWF Labs, has raised concerns about the instability behind the current rally. He noted that while market activity is robust, it is largely driven by fast-moving capital, reward programs, and speculative behavior, rather than long-term commitment [1]. Grachev emphasized that Bitcoin’s market share has declined from 65% in June to around 61% currently, signaling a shift away from fundamental value [1].

He also pointed out that borrowing rates on decentralized platforms have dropped significantly, with yields in some stablecoin pools falling from over 60% earlier this year to under 5%. This decline, Grachev argues, reflects weakening incentives and could undermine current momentum [1].

Regulatory developments, however, have provided some support for the market. U.S. President Donald Trump issued two executive orders favoring crypto, including one that instructed regulators to reassess the inclusion of digital assets in employer-sponsored retirement plans. The second order sought to address what the industry calls “debanking,” where banks allegedly shut down accounts based on crypto-related activities [1].

Paul Grewal, Coinbase’s chief legal officer, commented on the first order, stating that it marked a step forward in addressing “Operation Chokepoint 2.0,” a term used to describe the alleged conspiracy of financial institutions to restrict crypto services.

Despite the positive regulatory developments, Grachev warned that headline liquidity figures can be misleading. He advised institutional investors to focus on how liquidity behaves in stressed conditions rather than merely tracking price movements [1].

Grachev is closely monitoring key indicators such as stablecoin redemption patterns, changes in funding rates across exchanges, and the pace of on-chain borrowing, as these are early signs of potential structural weakness [1]. In the past three weeks, he noted that liquidity for certain altcoin pairs fell by more than 40% during volatility spikes, making even minor sell-offs capable of sharp price moves [1].

Grachev clarified that his remarks are an operational assessment rather than a forecast. “In this environment, understanding how liquidity behaves matters more than following where the price moves,” he said [1].

Source: [1] Crypto market cap hits new all-time high, but instability looms (https://finbold.com/crypto-market-cap-hits-new-all-time-high-but-instability-looms/)