Ethereum is emerging as the center of DeFi, attracting significant attention from institutional investors and the global market.
ETH is not only the foundation for DeFi and NFTs but has also become a digital reserve asset recognized by Wall Street, with strong growth in application and allocation from institutional treasuries.
MAIN CONTENT
Ethereum has become a digital reserve asset chosen by many major financial institutions.
Bitcoin's dominance is declining, and Ethereum and altcoins are about to enter a strong bullish cycle.
Supportive policies along with capital flows from institutional treasuries drive ETH prices up, but volatility still looms.
How is Ethereum viewed in the Wall Street investment community?
Ethereum is being positioned as an on-chain reserve asset, similar to gold or treasury bonds, used in the traditional financial world.
Over 54% of stablecoins are currently issued on the Ethereum platform. Many real assets are also tokenized and circulated on this network, creating a rich digital financial ecosystem. Corporations like BlackRock are proposing additional staking features for Ethereum ETFs, indicating growing recognition of ETH as a key asset class in large investment portfolios. Fidelity and Electric Capital both use Ethereum as a "national financial layer" with ETH as a reserve asset, ushering in a new era for Blockchain in traditional finance (TradFi).
Is Ethereum leading as Bitcoin loses momentum?
After months of Bitcoin dominating the market, the current trend shows Ethereum standing out more.
The latest data shows Bitcoin dominance has fallen below a crucial threshold, a signal that often appears before strong altcoin rallies in the past. Ethereum has risen 20% within a week, with daily active addresses and trading volumes reaching new records, reflecting vibrant participation from the user and investor community.
"Ethereum demonstrates superior strength, paving the way for the next altcoin bull cycle."
Director of Crypto Insights, 07/2025
The cycle of declining Bitcoin dominance often accompanies investment capital shifting to Ethereum and other altcoins. If this trend continues, 2025 could witness a strong recovery in the non-Bitcoin cryptocurrency market.
What factors drive Ethereum's surge and what are the associated risks?
Policy victories and commitment from institutional treasuries play a crucial role in Ethereum's recent price surge.
Nic Puckrin, a cryptocurrency analyst and founder of The Coin Bureau, emphasizes the role of laws like CLARITY and GENIUS in strengthening Ethereum's position, especially in the DeFi space utilizing yield-generating stablecoins.
"The GENIUS Act focuses on Yield-Generating stablecoins, expanding opportunities for DeFi on Ethereum."
Nic Puckrin, cryptocurrency analyst, 06/2025
Real-world examples show an increase in institutional confidence: SharpLink Gaming with Joe Lubin, co-founder of Ethereum, adds $225 million ETH to its treasury, along with Peter Thiel's Bitmine Immersion Technologies holding over $500 million ETH. However, Puckrin also warns about the high volatility of the market:
"Strong momentum along with volatility forces investors to be cautious."
Nic Puckrin, June 2025
Frequently Asked Questions
What is Ethereum currently considered in the cryptocurrency market?
Ethereum is viewed as an important digital reserve asset, used by many financial institutions as the foundational layer for DeFi and digital assets.
How does the decline in Bitcoin dominance affect the market?
The decline in Bitcoin's dominance often signals a capital shift to altcoins, opening a new growth cycle for Ethereum and other coins.
What impact do U.S. policies have on Ethereum?
Laws like CLARITY and GENIUS supporting stablecoins and DeFi allow Ethereum to benefit from broader adoption in DeFi.
How much have large institutions invested in Ethereum?
SharpLink Gaming holds $225 million ETH, Bitmine Immersion Technologies holds over $500 million ETH, indicating growing trust in Ethereum.
Does Ethereum have any risks when it surges in price?
High price volatility poses potential risks, requiring investors to manage risks carefully despite positive outlooks.
Source: https://tintucbitcoin.com/ethereum-chiem-54-thi-phan-stablecoin/
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