Ethereum News Today: Ethereum’s Quiet Rise: Why Investors Are Replacing Bitcoin’s Throne

Ethereum continues to gain momentum in 2025, with record-breaking network activity and steadily rising institutional adoption. Despite trading near all-time highs, the network remains efficient, with low transaction fees and growing on-chain engagement. As of August, Ethereum processed over 2.4 million daily transactions and maintained more than 1.2 million active addresses, both at historical peaks. Gas fees, however, have remained significantly lower than those seen during the 2021–2022 bull market, averaging about $80 million per day compared to previous peaks above $300 million [4]. This sustained demand, coupled with low costs, underscores Ethereum’s growing appeal for both individual and institutional users.

The surge in on-chain activity coincides with a shift in investor behavior, particularly among short-term and long-term holders (STHs and LTHs). According to on-chain analytics, STHs are accumulating Ethereum at a steady pace, currently holding nearly 39.4 million ETH, while LTHs hold 81 million ETH and are starting to offload holdings [4]. Historically, STH accumulation without significant profit-taking has been a precursor to strong price rallies. As a result, Ethereum appears well-positioned to absorb more capital in the coming months, potentially challenging Bitcoin’s dominance in the broader crypto market.

Institutional interest in Ethereum has also accelerated, driven by new regulatory developments and the launch of spot Ethereum ETFs. These funds have attracted over $2.8 billion in a single week, with a record $1.02 billion inflow on August 11 alone [5]. As of August, the total value locked (TVL) in Ethereum’s DeFi ecosystem hit $97 billion, the highest since November 2021 [5]. Public companies are also increasingly allocating ETH to their treasuries, with BitMine, SharpLink Gaming, and ETHZilla collectively holding nearly 3% of the total supply, valued at approximately $19 billion [3]. This institutional buying has created sustained upward pressure on the price, propelling Ethereum closer to a potential breakout from its previous all-time high of $4,878.26.

Market analysts and industry figures are increasingly bullish on Ethereum’s future. Arthur Hayes, founder of BitMEX, has raised his price target for ETH to $20,000 by the end of the current market cycle, citing expectations of aggressive monetary easing under a potential Donald Trump administration [1]. Similarly, Sean Farrell of Fundstrat Digital Asset Research predicts Ethereum could reach $10,000 by year-end, with a more optimistic range of $12,000–$15,000 [5]. These forecasts are based on Ethereum’s expanding utility as a foundational infrastructure for decentralized finance, AI-driven transactions, and digital asset management. The recent Pectra upgrade, which enhanced staking efficiency and Layer 2 scalability, has also contributed to renewed investor optimism [2].

As Ethereum’s adoption and use cases expand, the cryptocurrency is narrowing the gap with Bitcoin. While Bitcoin remains the dominant store of value, Ethereum’s role as the “backbone of future financial markets” is gaining traction among institutional investors and developers alike [2]. The debate over whether Ethereum could eventually surpass Bitcoin in market capitalization—commonly referred to as the “flippening”—has resurfaced as ETH-based projects and infrastructure continue to mature. However, most analysts view this as a long-term possibility rather than an imminent reality. For now, Ethereum’s ability to maintain steady price appreciation, attract institutional capital, and deliver scalable infrastructure positions it as a key driver of the next bull market cycle.

Source:

[1] title1 (https://finance.yahoo.com/news/why-arthur-hayes-expects-ethereum-210103605.html)

[2] title2 (https://www.theblock.co/post/366657/shell-dnp-ethereum-hits-new-all-time-high-price-as-eth-crosses-4900-for-the-first-time-ever)

[3] title3 (https://www.dlnews.com/articles/markets/three-reasons-why-ethereum-broke-a-new-all-time-high/)

[4] title7 (https://ambcrypto.com/ethereum-activity-hits-records-while-fees-stay-low-whats-next/)

[5] title8 (https://thedefiant.io/news/blockchains/ethereum-on-chain-activity-hits-2025-high-with-usd97-billion-locked-in-defi)