Ethereum News Today: Ethereum's Smart Contracts Outpace Bitcoin in AI Finance Race

Ethereum, the world's second-largest blockchain by market capitalization, is increasingly being recognized for its potential to underpin financial services in the age of artificial intelligence. Ether, the native token of the Ethereum network, recently broke its all-time high of $4,945.60, surpassing the previous record set in 2021. This milestone reflects growing institutional interest and confidence in the platform, fueled in part by the activities of digital asset treasury companies, exchange-traded funds (ETFs), and bullish sentiment in the broader market. Companies like SharpLink Gaming, BitMine Immersion Technologies, and EthZilla have begun prioritizing ether in their investment strategies, mirroring the approach taken by Michael Saylor’s company, MicroStrategy.

James Butterfill, head of research at CoinShares, highlights that Ethereum’s role in facilitating large stablecoin transactions is a critical factor in its ongoing appeal. He points to the potential impact of the U.S.-passed GENIUS Act, which provides a regulatory framework for the stablecoin sector. This development is expected to accelerate Ethereum’s role in financial transactions, particularly as stablecoins such as Tether’s USDT and Circle’s USDC become more integrated into global payment systems. The Act also reinforces Ethereum’s economic design, which typically results in neutral or even negative net issuance of new ether, helping to constrain supply while demand continues to rise.

Meanwhile, the European Union is rethinking its strategy for a digital euro in light of the rapid developments in the U.S. market. The Financial Times reports that European policymakers are now considering whether to build the digital euro on public blockchains such as Ethereum or Solana, a shift from earlier plans that emphasized private infrastructure. This change in approach is largely attributed to the U.S. legislation, which is perceived as a potential threat to the euro’s role in global cross-border payments. The European Central Bank (ECB) has stated it is evaluating both centralized and decentralized technologies for the digital euro initiative, with public blockchains being discussed as a means to enhance the euro’s reach and competitiveness against dollar-backed stablecoins.

Ethereum’s unique value proposition lies in its programmable blockchain, which supports the execution of smart contracts—self-executing agreements that automatically enforce the terms of a contract. This feature makes it well-suited for financial operations where trust and transparency are paramount. Unlike Bitcoin, which reimagines money as a digital store of value, Ethereum reimagines the internet itself by enabling decentralized applications and services. Butterfill notes that major investors are only now beginning to appreciate the distinction, which is likely to drive further adoption and integration of Ethereum in AI-powered financial systems.

As the digital finance landscape continues to evolve, Ethereum is increasingly being positioned as a foundational infrastructure for the next wave of financial innovation. Its growing adoption by institutional investors, regulatory developments in the U.S. and Europe, and intrinsic design that supports secure, transparent transactions are key factors contributing to its strategic importance. With the ECB and other global institutions exploring how to integrate blockchain technologies into their digital strategies, Ethereum’s role in AI-powered finance appears to be more than speculative—it is a tangible reality backed by market and regulatory momentum.

Source:

[1] Ether, the number two crypto, closes on bitcoin (https://www.axios.com/2025/08/24/ether-all-time-high)

[2] U.S. Stablecoin Law Jolts EU Into Rethinking Digital Euro ... (https://www.coindesk.com/policy/2025/08/22/u-s-stablecoin-law-jolts-eu-into-rethinking-digital-euro-strategy-ft)

[3] EU considers blockchains like Ethereum and Solana for digital ... (https://www.dlnews.com/articles/regulation/eu-considers-public-blockchains-for-digital-euro-says-ft/)

[4] EU Explores Ethereum or Solana for Digital Euro as US ... (https://finance.yahoo.com/news/eu-explores-ethereum-solana-digital-050532428.html)