ETH Comeback Signals: Top 5 Growth Drivers in 2025

Key Takeaway

• Crypto regulatory framework becoming clearer with GENIUS and CLARITY acts making breakthrough progress
• Listed companies like SharpLink (205,634 ETH) leading ETH treasury adoption trend
• Ethereum Foundation restructuring for greater transparency and fiscal policy clarity
• ETH staking hits record 35+ million, accumulation addresses reach 22.8 million ETH
• Major institutions and crypto leaders reaffirming long-term confidence in Ethereum

Ethereum (ETH) Market 2025

After peaking at $4,093 in December 2024 (still not surpassing its ATH in 2021), ETH dropped to a low of around $1,300–$1,400, losing over 65% of its value. Let’s look back at 2019, when Bitcoin dominance reached nearly 73%, draining capital from the entire altcoin market. At that time, altcoins saw almost no capital inflows, and the market had largely lost faith in an altcoin season. Looking at the first half of 2025, we are witnessing a cycle similar to the 2019 one, with the ETH/BTC ratio dropping to 0.018 — almost returning to the starting point of the 2019 bull market. So, with ETH’s position as the queen of crypto, what drivers can we rely on to have confidence in the upcoming bull cycle?

Unlike the 2019 cycle, which was largely driven by speculation and market sentiment, the current cycle is seeing more solid institutional foundations being built.

First, the regulatory landscape for crypto is becoming increasingly defined. The GENIUS Act and CLARITY Act are making meaningful progress toward a transparent legal framework, removing one of the biggest hurdles to institutional entry: legal uncertainty. With clearer guidelines in place, institutions are better equipped to make long-term capital allocation decisions involving ETH.

Second, publicly traded companies are beginning to adopt ETH as a treasury asset. SharpLink, currently holding 205,634 ETH, has emerged as a front-runner, like MicroStrategy’s role with Bitcoin. This signals a broader shift in corporate strategy, as ETH gains recognition not just as a tech platform but also as a potential store of value. As early adopters demonstrate success, more firms are likely to follow, fueling a new phase of corporate accumulation.

Meanwhile, the Ethereum Foundation is undergoing structural reforms to improve governance transparency and clarify fiscal policies. These changes directly address previous concerns about opacity and sustainability. For institutional stakeholders, increased transparency into Ethereum’s management and development roadmap greatly enhances long-term confidence.

From an infrastructure perspective, Ethereum’s staking metrics are reaching historic highs. Over 35 million ETH are now staked, and accumulation addresses have exceeded 22.8 million ETH in total. This shows strong conviction and a reduced circulating supply. With demand remaining steady and supply tightening, the underlying price dynamics are becoming more bullish.

Finally—and perhaps most importantly—major institutions and industry leaders are once again voicing strong, long-term confidence in Ethereum. Today’s endorsements come from credible figures with deep technical and financial backgrounds. Their support helps cement Ethereum’s position as both a foundational smart contract network and a core layer of the evolving decentralized financial system.

Taken together, these trends suggest that although ETH is experiencing a cyclical downturn reminiscent of 2019, the recovery now rests on far stronger foundations. The stage is set for a more resilient and enduring bull cycle.

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1. Favorable Policy: From Uncertainty to Clarity

Crypto assets are finally moving out of the legal gray area. Landmark laws like the GENIUS Act and CLARITY Act are making significant progress, while the SEC is actively considering exemption frameworks tailored for DeFi.

Let’s first talk about the GENIUS Act. It requires stablecoins to be fully backed by liquid assets such as cash or short-term Treasuries, mandates monthly reserve disclosures and rigorous audits, and creates a dual regulatory system. For larger issuers, federal oversight applies; for smaller ones, state supervision is available under certified frameworks unless they comply with equivalent regulation, register with the OCC, maintain U.S. reserves, and submit to U.S. law enforcement. It clarifies that payment stablecoins are not securities or commodities, removing a major legal uncertainty. Since current data indicates fewer than 15% of stablecoins meet these criteria, the measure forces ecosystem-wide redesigns, especially on Ethereum protocols, to align with transparent, compliant models. 

Also, on July 4, 2025, the US Congress enacted the One Big Beautiful Bill Act (OBBBA), a comprehensive tax and spending package signed by President Trump. While not directly targeting crypto, the act cemented several significant provisions: it extended the tax cuts, introduced a $600 de minimis exclusion for small crypto transactions, deferred taxation of staking and mining income until assets are sold, and adopted mark‑to‑market accounting for active traders. These measures reduce compliance complexity and fiscal unpredictability for digital asset participants.

Together, these legislative developments mark a clear shift in how the U.S. approaches digital assets. It’s moving from uncertainty to structured oversight. As the SEC considers tailored exemptions for DeFi and lawmakers work to define digital assets in law, Ethereum is well positioned to become the primary infrastructure layer. With clearer rules in place, its ecosystem of decentralized finance, NFTs, and stablecoins now rests on firmer legal ground.

The implications are transformative: institutional capital can enter Ethereum with confidence; decentralized teams can build with legal certainty; and scalability and transparency become hallmarks of compliance-ready applications. Moreover, Ethereum’s Pectra upgrade (released in May 2025) introduced enhanced staking thresholds, account abstraction, and improved Layer 2 interoperability that align perfectly with evolving regulatory demands for security and efficiency.

2. Institutional Capital: New Reserve Asset Narrative

ETH Accumulation Trend

Since SharpLink announced its strategic ETH reserve fund, listed companies like Siebert Financial, Treasure Global, and Bit Digital have successively added ETH to their balance sheets.

SharpLink – dubbed the “ETH version of MicroStrategy” – currently holds 205,634 ETH (~$530 million at $2,600).

Institutional Capital Flows

• Abraxas Capital: Withdrew over 270,000 ETH (~$700 million) from exchanges in multiple large transactions
• Matrixport: Withdrew 50,734 ETH (~$130 million) from Binance and OKX
• Coinbase: Accumulated over $335 million worth of ETH on balance sheet
• Robinhood: Expected to follow Coinbase’s lead

The trend of ETH accumulation by major financial institutions reflects a significant shift in regulatory frameworks and perceptions of digital assets. The inclusion of ETH on the balance sheets of investment funds and publicly listed companies indicates that Ethereum is being recognized as a strategic reserve asset, similar to gold or Bitcoin. 

Additionally, large-scale ETH withdrawals from exchanges by entities such as Abraxas Capital and Matrixport signal a long-term holding strategy, not merely for short-term speculation, but as a hedge against inflation and volatility in traditional markets. This behavior may create substantial upward price pressure on ETH in the medium to long term, as circulating supply is increasingly held by institutional “diamond hands.”

3. Platform Self-Adjustment: Transparent Governance

The Ethereum Foundation, facing criticism for lack of transparency, has implemented comprehensive adjustments:

• Restructured research and development teams
• Published new fiscal policy documentation
• Clarified asset management strategy and ETH selling mechanisms
• Committed long-term to DeFi ecosystem

And what does this mean? It signals that Ethereum continues to protect 2 key characteristics of the network: credible neutrality and institutional legitimacy.

The Ethereum Foundation (EF) has recently undergone significant governance transitioning from a relatively closed model to one that emphasizes transparency and long-term sustainability. This reform process has been guided by a clear roadmap, involving leadership restructuring, strategic planning, and the emergence of complementary institutions.

The process began in November 2024 with the release of EF’s first-ever financial report, offering unprecedented insight into its expenditures and operational structure. In January 2025, co-founder Vitalik Buterin also announced leadership updates to align the foundation with its evolving role in the Ethereum ecosystem. This was followed by the introduction of EF’s first formal treasury management policy in June 2025, which marked a major transition from passive fund holding to an actively managed and clearly communicated financial strategy.

Currently, EF operates through 23 internal teams working across various focus areas such as ecosystem development, developer tools, research, and community programs. It spends approximately 100 million dollars annually and maintains a financial reserve projected to sustain operations for the next ten years. In the last quarter of 2024, the foundation allocated 11.6 million dollars in grants and supported 41 academic research initiatives, underscoring its ongoing commitment to foundational growth.

On July 2, 2025, during the Ethereum Community Conference (EthCC), core developer Zak Cole launched the Ethereum Community Foundation (ECF), an independent initiative designed to complement EF’s mission. In contrast to EF’s broader mandate, ECF positions itself with a focused objective: accelerating ETH’s path to a ten-thousand-dollar valuation. Its approach centers on directly supporting ETH holders and strategically funding efforts aimed at boosting market value. Cole described ECF’s role as stepping in to pursue goals that the Ethereum Foundation deliberately avoids.

You can say EF and ECF now represent two distinct yet interconnected forces within Ethereum’s ecosystem. EF provides stability, transparency, and infrastructure support, while ECF injects targeted momentum focused on price-driven growth. This dual-track evolution may fundamentally reshape how Ethereum is governed, supported, and valued in the years ahead.

4. On-Chain Data: Solid Foundation

Stablecoin Dominance

• Ethereum stablecoin users: 750,000+/week (record high)
• USDT on Ethereum: $73 billion
• USDC on Ethereum: $41 billion
• Combined 85% of stablecoin market

In 2025, stablecoins are predicted to be the driving force behind Ethereum’s continued dominance in the crypto ecosystem. With over $114 billion in total value locked (TVL), Ethereum now functions as the de facto “central bank” of crypto, anchoring liquidity across decentralized finance.

This influx of capital has significantly expanded Ethereum’s DeFi landscape. Lending platforms such as Aave and Compound are experiencing record levels of stablecoin deposits, while decentralized exchanges like Uniswap and Curve benefit from consistently high trading volumes. At the same time, protocols that mint decentralized stablecoins—such as DAI and frxETH—rely heavily on ETH as collateral, creating continuous buying pressure for ETH and reinforcing its monetary role within the system.

Beyond TVL, daily usage metrics point to intense network activity. With over 750,000 weekly stablecoin users, demand for ETH as gas continues to surge. Every stablecoin transaction requires ETH to process, and under EIP-1559, a portion of that ETH is permanently burned. This mechanism not only supports network security but also introduces a natural deflationary effect, steadily reducing ETH’s circulating supply.

Ethereum now commands around 85% of the stablecoin market, creating a powerful network effect. DeFi applications, lending markets, and payment rails all depend on stablecoin liquidity, forming an ecosystem that is increasingly difficult to replicate or displace. As institutional participation accelerates, stablecoin inflows are expected to keep rising, further cementing ETH’s position as the commodity money of global decentralized finance.

Staking & Accumulation

• 500,000+ ETH newly staked since June 2025
• Total staked ETH: 35+ million (record high)
• Addresses that never sold ETH: 22.8 million (all-time high)

The figure of over 500,000 ETH newly staked in just a month and a half since June 2025 is not the result of organic growth from retail investors. This is a clear sign of a strong wave of buying from traditional financial institutions (TradFi). With 54.5% of current stakers being institutions, including investment firms and asset managers, we are witnessing a significant structural shift: ETH is no longer just a “toy” for crypto natives—it has become a core asset in the treasuries of major institutions.

BlackRock, Fidelity, and numerous other asset managers have begun integrating staking into their ETF products. This is not just about adding a new product line—it is an acknowledgment that ETH staking has become a standalone asset class with a more attractive risk-return profile than traditional fixed-income products.

Large corporations are quietly carrying out a revolution in treasury management. Instead of letting cash “sit idle” in low-yield fixed-income instruments, they are turning to ETH staking to capture a protocol-driven yield of 3.1%—a return that is independent of central bank policy or credit risk.

With liquid staking tokens, CFOs can maintain liquidity while still earning staking rewards. This is a technological breakthrough solving a classic treasury dilemma: no longer having to choose between yield and liquidity. Corporations can simultaneously earn staking rewards, provide liquidity to DEXs, participate in lending protocols, and use the assets as collateral—all from the same position.

Ethereum ETFs

• 9 consecutive weeks of net inflows
• June 2025: $1.17 billion inflows
• H2 projection: $10 billion potential inflows

The continuous inflow of capital into ETH for nine consecutive weeks highlights the growing interest from institutional investors in Ethereum. The fact that ETFs attracted $1.17 billion in just June 2025 reflects both liquidity and strong confidence in ETH’s growth potential. The projected $10 billion inflow in the second half of 2025 could generate significant upward price pressure on Ethereum while reinforcing its position as an institutionalized digital asset. This development not only brings further legitimacy to the crypto market but also opens the door for traditional investors to access ETH in a more convenient and secure manner.

5. Industry Perspectives: Faith Returning

Nick Tomaino (1confirmation)

“Ethereum is the foundation for the industry’s continued development. Credible neutrality, open source, and permissionless innovation must be inherited and continuously propagated.”

David Hoffman (Bankless)

“Ethereum’s investment in neutrality and MEV minimization brings advantages for TradFi adoption. This is a key motivation for traditional financial institutions to choose Ethereum.”

Alex Gluchowski (zkSync)

“Solana simply cannot compete with Ethereum on decentralization and censorship resistance, nor can it compete with L2s on latency.”

Joseph Lubin (Consensys)

“Ethereum Layer 1 will become the world’s primary ledger – allowing anyone to view, use, add data without permission.”

The crypto market is witnessing a fascinating phenomenon as top industry leaders simultaneously express strong confidence in the resurgence of Ethereum. This consensus is not just a passing trend—it is the primary driving force reshaping the entire crypto ecosystem. When the most influential KOLs rally behind Ethereum, they generate a powerful psychological momentum, because in crypto, the collective conviction of smart money often leads to real market movements.

What’s especially significant is Ethereum’s neutrality and its efforts to minimize MEV, which are attracting traditional financial institutions. As TradFi embraces Ethereum, both legitimacy and liquidity are set to grow exponentially. Furthermore, Ethereum’s decentralization and censorship resistance are core strengths that competitors struggle to replicate. When combined with Layer 2 solutions, Ethereum is building a sustainable competitive advantage.

The vision of Ethereum as the “world’s settlement layer” is not mere hype—it’s a strategic roadmap grounded in reality, supported by the largest developer ecosystem and growing institutional adoption.

The impact of this trend is already evident in the market, with immediate effects including increased developer activity, capital inflows, rising institutional interest, and a noticeable positive shift in market sentiment. Over the long term, this acts as a catalyst for accelerating network effects, regulatory clarity, and ecosystem-wide innovation.

Market evidence shows rising TVL in L2 solutions, expanding enterprise Ethereum strategies, and improving sentiment across social media. Ethereum’s revival is no longer just a trend—it’s becoming a fundamental shift in the crypto market, creating a self-fulfilling prophecy where collective belief drives market confidence, institutional adoption, technical development, and sustainable growth.

This is the core force reshaping the crypto market: collective belief in Ethereum’s resurgence, voiced by the most reputable figures in the industry—because in crypto, narratives drive price, and right now, the strongest narrative belongs to Ethereum.

Conclusion: Ethereum Is Truly Different This Time

Every market comeback starts at a moment of deep doubt. After falling 48% from $4,093 to $2,113, Ethereum has reached a point where even a modest wave of institutional inflows could reignite momentum. 

At the same time, 5 key drivers are quietly aligning: regulatory clarity with the GENIUS and CLARITY Acts, growing ETH accumulation by firms like SharpLink and Abraxas, renewed governance transparency from the Ethereum Foundation, record on-chain activity with over 35 million ETH staked, and strong endorsements from respected industry voices. While short-term volatility remains, Ethereum’s foundation is clearly stronger. The next leg up may not be driven by hype, but by structure, conviction, and capital.

For investors, builders, and institutions alike, the message is clear: this may be the most strategic time to pay attention to ETH.