Key takeaways
Ethereum is gaining momentum with a 20% rally, driven by U.S. policy support, growing DeFi demand, and major institutional treasury allocations. Falling Bitcoin dominance and rising Ethereum activity hint at an incoming altseason led by ETH.
Ethereum [ETH] is back in the spotlight – and this time, Wall Street is watching closely. As stablecoin adoption soars and real-world assets go on-chain, ETH is emerging as more than just a utility token.
Ethereum’s evolution as the Wall Street darling
Ethereum is no longer just the foundation for DeFi and NFTs – it’s fast becoming Wall Street’s on-chain reserve.
With over 54% of stablecoins issued on Ethereum and billions in tokenized real-world assets settling on its network, ETH is now seen as digital collateral akin to Treasuries or gold.
These developments come as BlackRock filed to add staking to its Ethereum ETFs.
From Fidelity to Electric Capital, institutions increasingly treat Ethereum as a sovereign financial layer where ETH is the reserve asset.
Its role in collateralization, settlement, and staking-backed yield positions it as the backbone of the emerging digital dollar economy, reshaping how TradFi views and uses blockchain infrastructure.
Ethereum leads as BTC falters
After months of Bitcoin dominance climbing steadily since December 2024, the tide may be turning.
BTC dominance recently broke below a key threshold; mirroring patterns seen ahead of prior altseason bursts.
Source: X
In previous market cycles, a drop in Bitcoin dominance often led to a capital rotation into altcoins, with Ethereum typically leading the charge.
Now, Ethereum is up 20% in the past week, outperforming Bitcoin. Its daily active addresses and transaction volume have hit record highs, signaling strong network engagement.
This divergence, combined with falling Bitcoin dominance, suggests a potential regime shift in the crypto market.
Historically, Ethereum’s strength has triggered broader altcoin rallies. If momentum continues, this breakout could be the start of a new altcoin season.
Policy wins and treasury buys push ETH higher, but volatility remains
Ethereum’s recent rally isn’t just driven by market momentum—it’s backed by real catalysts.
Nic Puckrin, crypto analyst and founder of The Coin Bureau, pointed to the impact of U.S. legislation like the CLARITY and GENIUS Acts, stating:
“GENIUS targets yield-bearing stablecoins, and this is great news for Ethereum-based DeFi.”
Institutional confidence is also rising. SharpLink Gaming, chaired by Ethereum co-founder Joe Lubin, added $225 million in ETH to its treasury.
Meanwhile, Bitmine Immersion Technologies, backed by Peter Thiel, has pivoted to Ethereum reserves, now holding over $500 million in ETH.
Puckrin believes Ethereum is gaining serious traction:
“Momentum is clearly on Ethereum’s side,” he said, projecting a near-term test of $4,000.
Still, he offered a word of caution:
“What goes up must come down.”
