Ethereum News Today: Ether Surges 56% in July on ETF Inflows and Speculative Demand

Ether ended July with its strongest monthly performance in three years, surging 56% to trade at $3,862 on July 22, up from an opening price of $2,468 on July 1 [1]. This marked the first time in over two years that Ether posted a monthly gain of 50% or more, matching its 56.62% jump in July 2022 [1]. The performance has drawn comparisons to the high-growth and volatile nature of 1990s tech stocks, with Bloomberg ETF analyst Eric Balchunas highlighting the role of spot Ether ETFs in driving the rally [1].

The inflows into Ether ETFs reached a historic 19-day streak, accumulating more than $5.37 billion between July 3 and July 30, with the highest net inflow on July 16 at nearly $727 million [1]. The rapid growth of these funds, including BlackRock’s iShares Ethereum ETF reaching a $10 billion asset-under-management milestone in just 251 days, has accelerated Ether’s adoption and exposure in institutional portfolios [1].

Despite the impressive price performance, some analysts remain cautious. Markus Thielen of 10x Research noted that Ethereum’s protocol-level activity remains underwhelming, with network revenue up only 3% in the past month and network activity rising by just 5% [1]. He contrasted this with November 2021, when Ethereum generated $1.5 billion in monthly revenue on a $300 billion market cap—equivalent to a 6% annual yield—making it a more compelling investment for institutional players [1]. Currently, with a $466 billion market cap, Ethereum’s yearly revenue stands at only $764 million, according to Token Terminal [1].

Thielen also highlighted that 90% of the price action in the past month originated from the Asian time zone, suggesting regional speculative activity may be a significant driver [1]. Meanwhile, the recent surge in Ether ETF inflows has temporarily outpaced those for Bitcoin ETFs for six consecutive days in July [1], signaling a shift in institutional and retail investor preferences.

The July rally coincided with broader economic uncertainty, including Trump’s reaffirmation of the August 1 U.S. tariff deadline, which has heightened market anxiety and redirected capital flows toward high-risk, high-growth assets [1]. However, Ether’s valuation remains speculative, and its performance is largely driven by demand dynamics rather than traditional earnings or revenue generation [1].

Ether’s 56% monthly return is a realized gain, not a forecasted one, and no analyst has provided forward-looking earnings estimates for the asset. Its valuation is tied to market sentiment, macroeconomic conditions, and regulatory clarity, which remain volatile and unpredictable [1].

Source: [1] Ether Surges 56% in Best Monthly Performance in Three Years (https://cointelegraph.com/news/ether-90s-tech-stock-ends-july-biggest-monthly-gain-3-years)