Ethereum News Today: Ethereum Surges 45% as GENIUS Act Legalizes Stablecoins

Ethereum (ETH) has recently experienced a significant rally, with its value surging. This increase is largely attributed to institutional demand, as traditional financial institutions increasingly integrate blockchain technology into their operations. Analysts have highlighted Ethereum's robust infrastructure and widespread adoption as key factors in its growing prominence within the financial ecosystem.

Bernstein, a prominent brokerage firm, has released a report suggesting that stablecoins and Real World Asset (RWA) tokenization will further drive demand for ETH. The firm's analysts predict that Ethereum will continue to attract strong investment interest, particularly from institutional portfolios influenced by major asset managers. Additionally, banks and fintech companies are expected to purchase operational ETH to cover Ethereum transaction fees.

One of the key drivers behind Ethereum's recent surge is the GENIUS Act, which was signed into law last week. This legislation legalizes stablecoins, providing a significant boost to Ethereum's value. Given Ethereum's dominance in the stablecoin market, the legal recognition of stablecoins has contributed to a 45% increase in ETH's value over the past two weeks.

Bernstein's report also highlights the emergence of Ethereum-based treasury companies as a significant factor in the cryptocurrency's uptrend. Positive inflows into Ethereum spot ETFs and the rising demand for staking returns have further supported this trend. The firm's analysis indicates that the recent rally in Ethereum is directly related to the increasing number of Ethereum treasury companies, which are driving institutional interest and investment.

Looking ahead, analysts expect the rally in Ethereum to continue, driven by ongoing technological developments within the Ethereum network and the increasing adoption of blockchain solutions by traditional financial institutions. The potential for Ethereum to reach new heights is supported by its strong fundamentals and the growing demand for decentralized applications. However, investors should remain cautious given the volatility of the crypto market.