Ethereum News Today: Ethereum surges 50% to $3,677 as GENIUS Act boosts institutional interest

Ethereum's price has surged to a six-month high, reaching $3,677 on July 18, marking a 50% rally since it dipped near $2,400 earlier this month. This significant price increase is driven by several key factors, including the passage of the GENIUS Act, which provides a clear regulatory framework for stablecoins in the U.S. This legislation is expected to unlock a wave of institutional capital and accelerate crypto adoption, particularly benefiting Ethereum's ecosystem.

The surge in Ethereum's price is also fueled by rising institutional interest and record inflows into spot ETH ETFs. For the first time, Ethereum ETFs outpaced Bitcoin ETFs in daily inflows, with US spot Ether ETFs pulling in $602 million on July 17, surpassing the $522.6 million that went into Bitcoin funds. This follows a record-setting $726 million inflow into ETH ETFs the day before. BlackRock’s ETHA led the charge, pulling in $550 million and outperforming its own Bitcoin product. Since launch, Ethereum ETFs have pulled in over $5.5 billion, with $3.3 billion of that coming in just since mid-April.

Analysts highlight a strong shift in market sentiment that began in April, with the CNH/USD and ETH/BTC pairs bottoming while gold peaked, signaling a move from a risk-off to risk-on environment. Since then, ETH has outperformed BTC by 70%, with more upside likely over the next 12–24 months. The massive ETH ETF inflows outpacing Bitcoin’s and the approval of the Stablecoin Bill have kicked off a new phase for Ethereum, possibly signaling the start of the bull market.

More companies are adopting Ethereum as a treasury asset, mirroring MicroStrategy’s Bitcoin strategy. BitMine has acquired over 300,000 ETH, aiming to stake 5% of the total supply. SharpLink Gaming and Bit Digital are also building large ETH reserves, raising billions to expand holdings. With both hype and real progress behind it, many analysts believe ETH’s rally may have much more room to run.

The surge in Ethereum's price is also driven by a significant increase in daily transactions, with Ethereum recording 2.39 million daily transactions recently. This is the highest number since January 2024 and is driven by surging activity in decentralized finance (DeFi) and non-fungible tokens (NFTs). The passage of the stablecoin bill is also expected to boost activity in the DeFi sector, further benefiting Ethereum.

The new crypto legislation, especially if it leads to more activity in DeFi, could make Ethereum a major beneficiary. The legislation is expected to provide a more favorable regulatory environment for cryptocurrencies, which could attract more institutional investors and increase the demand for Ethereum. The stablecoin push, which could transform client money flows, is also expected to have a positive impact on Ethereum's price.