Ethereum News Today: Ethereum surges 60% in July driven by fresh capital not Bitcoin outflows

Ethereum’s price surged over 60% in July, climbing from approximately $2,400 on July 1 to a peak of $3,941 by July 27. This rally, however, was driven by fresh capital inflows rather than a shift of funds away from Bitcoin, according to on-chain analysis [1]. The distinction marks a departure from historical trends where Ethereum’s gains often coincided with Bitcoin outflows, signaling a maturing market dynamic.

Independent on-chain metrics challenged the notion of capital rotation between the two assets. Bitcoin’s Realized Cap—a measure of the total value of circulating Bitcoin based on the last transaction price of each coin—hit an all-time high of $1.018 trillion on July 25 [1]. This growth, alongside Ethereum’s rally, indicates both cryptocurrencies attracted separate streams of investment during the period. CryptoQuant contributor Carmelo Aleman noted that Bitcoin’s gradual Realized Cap increases often occur during price consolidation phases, which historically precede significant rallies. The simultaneous growth in both assets’ metrics suggests they are no longer operating in a zero-sum game [1].

Ethereum’s network activity reinforced the fresh capital narrative. Daily transactions on the Ethereum blockchain reached nearly 1.48 million on July 27, reflecting heightened utilization. Decentralized finance (DeFi) platforms also saw substantial growth, with Total Value Locked (TVL) increasing from $49 billion on April 29 to $84.6 billion by July 29 [1]. This surge underscored Ethereum’s role as a foundational infrastructure for Web3 innovation, drawing interest from institutional investors and speculative traders alike.

Supply-side dynamics further supported the bullish trend. Centralized exchanges reported a decline in Ethereum holdings by one million coins over the past month, indicating reduced selling pressure and tighter liquidity. Meanwhile, staking activity reached record levels, with 35.5 million ETH locked in liquid staking protocols [1]. The combination of exchange outflows and increased staking reduced the available supply of Ethereum, exacerbating upward price pressure during a period of strong demand.

The July rally highlights a broader shift in how the market evaluates cryptocurrencies. Unlike previous cycles where Ethereum’s performance was often tied to Bitcoin’s volatility or regulatory developments, this surge was driven by Ethereum’s intrinsic factors: post-merge efficiency improvements, the implementation of EIP-4844 upgrades to reduce transaction costs, and a maturing ecosystem of dApps and DeFi protocols [1]. Analysts emphasized that Bitcoin and Ethereum are increasingly being viewed as complementary assets rather than competitors, with each serving distinct roles as a store of value and a platform for innovation, respectively [1].

While the influx of fresh capital bodes well for Ethereum’s short-term outlook, long-term sustainability will depend on maintaining user adoption and institutional support. The absence of a Bitcoin exodus as a catalyst suggests the market is beginning to assess Ethereum on its own merits, a sign of growing sophistication in crypto investing. However, analysts caution that macroeconomic headwinds or regulatory shifts could disrupt the current trajectory. For now, Ethereum’s July performance underscores its evolving identity—from a speculative asset to a core infrastructure component in the digital economy [1].

Source: [1] “Ethereum Surges 60% In July Rally Driven By Fresh Capital, Not Bitcoin Exodus”

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