Ethereum News Today: Ethereum Surges 6.6% to Six-Month High on Stablecoin Bill Anticipation

On Friday, the broader crypto market experienced a significant surge, with Ethereum (ETH) climbing to a six-month high, surpassing the $3,600 mark. This rally was fueled by the anticipation of a pivotal stablecoin bill, the GENIUS Act, which was set to be signed into law by President Donald Trump. This legislation is a major milestone for the digital asset industry, as it provides a regulatory framework that could facilitate the broader adoption of stablecoins and other cryptocurrencies.

Ethereum, in particular, is poised to benefit from this development. The increased usage of US dollar-pegged stablecoins, which are primarily issued and transacted on the Ethereum blockchain, drives up the demand for ETH. This is because ETH is required to cover transaction fees on the network. The passage of the bill led to a surge in shares of BitMine, backed by tech billionaire Peter Thiel and chaired by Fundstrat’s Tom Lee, which rose by 12.7%. Other firms holding Ethereum, such as Bit Digital and BTCS, saw substantial gains of 6.5% and 22.9%, respectively, while SharpLink shares experienced a slight dip of 0.6%.

Matthew Dibb, Chief Investment Officer of Astronaut Capital, a Singapore-based crypto asset manager, highlighted the significance of institutional accumulation of Ethereum. He noted that the growth of stablecoins has been accelerated by recent successful initial public offerings (IPOs), such as that of Circle (CRCL), which saw its shares increase by 6%. Coinbase (COIN) also benefited, climbing 7.6% and reaching an all-time high since its IPO in 2021.

ETH rose to $3,675.81, its highest value since January 6, before settling at $3,643.09, reflecting a 6.6% increase. This performance outpaced Bitcoin (BTC), which eased by 0.5% to $118,870 after touching a record high of $123,000 on Monday. The recent trend of companies adding ETH to their balance sheets mirrors the approach taken by Strategy, the largest corporate holder of Bitcoin, whose shares have skyrocketed over 3,000% since 2000 amid the asset’s appreciation.

Dibb remarked on the potential of treasury companies focused on ETH, suggesting that while it remains to be seen whether they will outperform traditional Ethereum ETFs, the success of firms like Strategy may encourage further attempts. However, the shift towards ETH has raised questions, especially since it lacks a capped supply, unlike Bitcoin, which is limited to 21 million coins and often regarded as a digital store of value.

Michael O’Rourke, chief market strategist at JonesTrading, expressed skepticism about the viability of investing in crypto through equity wrappers that regularly issue new shares. He argued that while the fixed supply of Bitcoin is a key attribute, the treasury business model in the digital asset space is characterized by ongoing dilution from new share issuance.