Ethereum, the world’s second-largest cryptocurrency, is outperforming Bitcoin in a big way lately. While Bitcoin has hit record highs earlier this year, Ethereum has surged faster in recent weeks — rising 54% over the past month, compared to Bitcoin’s 10% gain.
Zack Shapiro, an attorney at the Bitcoin Policy Institute, told Business Insider that several factors are fueling Ethereum’s recent rally. “I think a lot of it is that it’s a speculation trade,” Shapiro said. “Long term, we have to see.”
Here are the main reasons Ethereum is pulling ahead:
1. Bullish Sentiment Around Stablecoins
Investor excitement around stablecoins has picked up after the Senate passed the GENIUS Act — a landmark bill that sets regulatory guidelines for fiat-backed stablecoins. Major stablecoins like Tether (USDT), USD Coin (USDC), and Binance USD (BUSD) are built on the Ethereum network.
“People think that stablecoins might proliferate a lot more,” said Shapiro. “Maybe some of those stablecoins will be on Ethereum.”
Reports also suggest retail giants like Walmart and Amazon are exploring the idea of launching their own stablecoins, which could be used for consumer payments. That would be a “big breakthrough” for the market, according to Apollo chief economist Torsten Sløk.
2. Institutional Support Through Ethereum ETFs
Another major boost comes from the rise of spot Ethereum exchange-traded funds (ETFs). Big players like BlackRock, Fidelity, and Grayscale have launched ETH-focused investment products, attracting institutional money.
BlackRock’s iShares Ethereum Trust ETF is up nearly 49% in the past month. Fidelity’s Ethereum Fund gained over 33%, and Grayscale’s Ethereum Mini Trust ETF has risen 49.2% in the same period. According to The Block, total spot Ethereum ETF volume reached $123.5 billion as of Wednesday.
3. Corporate Crypto Treasuries Buying In
Corporations are also jumping in. In 2025, there’s been a noticeable increase in companies holding crypto in their treasuries — and many are turning to Ethereum.
Bitmine Immersion recently announced that its ETH holdings exceeded $2 billion. Another firm, The Ether Machine, reported ETH assets totaling $56.9 million as of this week.
“These vehicles are out there buying Ethereum,” Shapiro said. “That could also be additional buy-pressure that’s moving up the price.”
