Ethereum News Today: Ether Surges 56% on Record ETF Inflows and Bullish Sentiment

Ether closed July with its strongest monthly performance in nearly three years, surging 56% to $3,862 from an opening price of $2,468 on July 1, according to CoinGecko data [1]. This marks the first time since July 2022 that the cryptocurrency has delivered a monthly return of over 50%, with the previous high being a 56.62% gain [1]. The rally has drawn comparisons to the high-growth tech stocks of the 1990s, as one Bloomberg analyst noted how Ether is "starting to look like a 90s tech stock" amid strong ETF inflows and growing adoption [1].

The price surge is closely tied to a 19-day net inflow streak into spot Ether ETFs this month, with total inflows exceeding $5.37 billion from July 3 to July 30. On July 16 alone, Ether ETFs saw a record net inflow of nearly $727 million. BlackRock’s iShares Ethereum ETF reached a rare milestone, becoming the third-fastest ETF to hit $10 billion in assets under management in just 251 days [1]. Notably, Ether ETF inflows surpassed Bitcoin ETF inflows for six consecutive days in July, an unusual trend that highlights the shifting dynamics within the crypto ETF market [1].

Bloomberg’s Eric Balchunas attributed Ether’s performance to accelerating adoption and network growth, likening it to the tech stocks of the 1990s, which saw rapid appreciation and speculative buying [1]. He contrasted this with Bitcoin, which he described as more akin to “digital gold,” emphasizing Ether’s potential for broader utility in the blockchain ecosystem [1].

However, not all observers are bullish on Ether’s fundamentals. Markus Thielen, CEO of 10x Research, noted that while the price of Ether has surged, on-chain activity and revenue growth on the Ethereum network remain muted. In the past month, network activity increased by just 5%, and revenue by only 3%. Thielen added that 90% of the price action in the past month came from the Asian time zone, suggesting regional speculative trends rather than broad-based adoption [1].

The current performance of Ethereum stands in stark contrast to its peak in November 2021, when it generated $1.5 billion in monthly revenue on a $300 billion market cap, implying an annual yield of 6%—a potentially attractive figure for institutional investors. By comparison, with a current market cap of $466 billion, Ethereum’s annualized revenue is just $764 million, according to Token Terminal [1].

Despite this, the narrative surrounding Ether appears to be shifting from a speculative asset to a high-growth technology play. The recent ETF-driven rally has been driven by market sentiment rather than concrete on-chain developments or upcoming upgrades. Analysts have not issued forecasts tied directly to this movement, and the rise appears to be largely market-driven [1].

Ether’s July performance underscores the growing influence of ETFs in the crypto market and the increasing willingness of traditional investors to allocate capital to digital assets. While the price surge may not be supported by on-chain metrics, it reflects broader investor optimism about the future of blockchain technology and decentralized finance.

Sources:

[1] Ether Surges 56% in Best Monthly Performance in Three ... (https://www.binance.com/en/square/post/27676379992002)