Ethereum’s momentum is being driven by real-world demand

Ethereum’s trade volume jumping ahead of Bitcoin’s reflects a few converging tailwinds. As I recently shared with The Block, we’re seeing sustained inflows into spot Ethereum ETFs, 15 consecutive days of net inflows with a total of US$837 million, including a record-breaking US$428 million in a single day. That kind of institutional demand drives both volume and sentiment.

Big names like BlackRock allocating US$230 million into ETH signal that Ethereum has moved well beyond speculative cycles, it’s being taken seriously as an investable asset by institutional portfolios. That conviction feeds through into secondary market activity.

We're also seeing renewed engagement across the DeFi and NFT ecosystems, which continue to be Ethereum-led. DeFi alone is locking in over US$73 billion in TVL, and stablecoin volume on Ethereum hit US$11 trillion this year. All of this generates on-chain demand for ETH, because it’s the native gas token for every single transaction.

Finally, Ethereum’s Pectra upgrade earlier this year improved scalability and cost-efficiency, making the network more usable and appealing for developers and institutions alike. It’s the combination of these real economy use cases and institutional inflows that’s pushing ETH volumes higher.

From speculation to infrastructure

Ethereum is cementing itself as more than just “the #2 crypto.” It’s the infrastructure backbone for Web3. The recent ETF approvals, and strong inflows post-launch,validate ETH’s credibility in traditional finance. We’re seeing Ethereum evolve from being the speculative layer-1 to becoming a regulated, investable asset with mainstream appeal.

What’s also critical here is Ethereum’s role in real-world financial infrastructure. Societe Generale launching a USDCV stablecoin on Ethereum is a prime example,that’s a major European bank integrating with the Ethereum network for settlement.

Institutional integration and regulatory maturity are taking shape

From a regulatory perspective, while there’s still some global ambiguity, U.S. approval of spot ETH ETFs, even without staking for now, is a strong indicator of regulatory maturity. The shift towards compliance, transparency, and utility puts Ethereum in a solid position to scale in institutional markets.

Yes, it still faces competition from faster chains like Solana, but Ethereum’s roadmap is ahead on Layer 2 scaling. Rollups like Arbitrum and Optimism are closing that performance gap, and they’re all tied back to ETH.

Ethereum’s outlook remains strong, with key catalysts ahead

Short term, ETH is riding a wave of momentum. The spillover from Bitcoin’s rally above US$110,000 has pulled ETH higher, with the asset gaining 7% in a single day. Price action is bullish, but we’re also watching key levels, resistance at US$3,600, support around US$2,800. If staking-enabled ETFs are approved later this year, that’s a catalyst that could take ETH into the US$5,500–$6,700 range by December.

Longer term, I’m constructive on ETH. It’s hard to ignore the fundamentals: a deflationary supply via EIP-1559, Layer 2 adoption, institutional inflows, DeFi dominance, and continuous protocol upgrades. If that trajectory continues, ETH at US$10,000–$20,000 by the end of the decade isn’t unrealistic.

That said, we can’t ignore risks, competition from faster Layer 1s, regulatory surprises, or macro pressures like rate hikes and inflation could slow things down. But Ethereum has shown it can adapt and continue building, even through market volatility.

Final thought

Ethereum’s surge in trading volume isn’t a blip it reflects structural growth, institutional validation, and real utility. For traders, it’s a signal to pay attention. ETH is no longer just the second-largest crypto by market cap, it’s becoming a cornerstone of the digital asset economy.

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