Ethereum News Today: Ethereum Surges Over 60% as Institutional Demand Outpaces Supply 32:1

Ethereum’s price has surged over 60% since mid-May 2025, driven by a stark imbalance between supply and demand. According to data from Bitwise, institutional demand has outpaced Ethereum’s network issuance by a ratio of 32:1. This disparity reflects heavy buying activity from Exchange-Traded Products (ETPs) and corporate treasuries, which have collectively acquired 2.83 million ETH since mid-May, far exceeding the 89,000 ETH issued by the Ethereum network during the same period [1]. The resulting scarcity has amplified price momentum, pushing ETH to a daily trading price of $3,722.19 and a market capitalization of $449.31 billion. Over 90 days, the asset has seen a 106.17% increase, with a 24-hour trading volume of $40.49 billion observed on July 24, 2025 [2].

Matthew Hougan, Chief Investment Officer at Bitwise, attributed the surge to unprecedented institutional appetite, stating, “Sometimes, it really is that easy,” in reference to the supply-driven dynamics shaping the market [3]. The influx of capital—exceeding $10 billion since mid-May—has been fueled by ETPs and treasury allocations, signaling Ethereum’s growing acceptance as a store of value. Analysts highlight that this trend mirrors the demand-driven rallies seen in Bitcoin following its ETF approvals in 2024, suggesting a broader shift toward institutional adoption of blockchain-based assets [4].

While current data underscores robust demand, future trajectories hinge on regulatory developments. Coincu research analysts note that impending updates to tokenization frameworks could further solidify Ethereum’s role in facilitating asset transactions, though such outcomes remain speculative [5]. For now, the market’s focus remains on absorption rates: with institutional vehicles rapidly acquiring ETH, network issuance continues to lag, potentially sustaining upward pressure.

The surge has also sparked discussions around Ethereum’s long-term utility. Hougan emphasized that the 32:1 demand-to-supply ratio is a critical driver of its price action, a dynamic that could persist if institutional buying accelerates. However, the absence of explicit regulatory clarity—unlike Bitcoin’s ETF milestones—leaves some uncertainty about how these trends might evolve.

Source: [1] [Demand Surge Drives Ethereum Price to New Highs] [https://coinmarketcap.com/community/articles/68824b9684d34a1323c775c5/]; [2] [Demand Surge Drives Ethereum Price to New Highs] [https://coinmarketcap.com/community/articles/68824b9684d34a1323c775c5/]; [3] [Demand Surge Drives Ethereum Price to New Highs] [https://coinmarketcap.com/community/articles/68824b9684d34a1323c775c5/]; [4] [Demand Surge Drives Ethereum Price to New Highs] [https://coinmarketcap.com/community/articles/68824b9684d34a1323c775c5/]; [5] [Demand Surge Drives Ethereum Price to New Highs] [https://coinmarketcap.com/community/articles/68824b9684d34a1323c775c5/].