Ethereum regains strength with a 56% surge, driven by stablecoins and tokenization growth.
Institutional focus shifts to Ethereum’s Layer 2 and RWA adoption for digital finance.
Hedge funds unwind ETH shorts as blockchain utility regains investor confidence.
Ethereum (ETH) has recovered 56% over the past month, reaching $2,565.95 at the time of writing on May 15, 2025. This renewed growth for Ethereum, following months where it lagged Bitcoin and newer Layer 1 competitors, points to shifts in institutional strategy, emerging blockchain technology use cases, and a broader market move away from single-asset dominance.
The ETH recovery started around April 24, when ETH traded below $1,700, and accelerated between May 8 and May 13, briefly passing $2,700 before stabilizing.
Structural Developments Drive Ethereum’s Resurgence
While general crypto market sentiment improved, Ethereum’s rise also stems from key structural developments, as highlighted in a client note from research firm Bernstein. These factors include increased activity in stablecoin payments, the expansion of Layer 2 networks, and a notable change in hedge fund tr…
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