Since its launch in 2015, Ethereum has proven itself to be more than just a digital currency; it is a decentralized platform that supports smart contracts and decentralized applications (dApps), and it forms the backbone of most innovations in the blockchain world.
In light of recent developments, some are asking a bold question: Can Ethereum surpass Bitcoin and become the market leader in the upcoming bull wave of 2025?

To answer, we need to analyze multiple factors: from new laws to technological updates, and even institutional trends in the crypto market.

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Dominance in the stablecoin field

Ethereum is the largest home for most stablecoins like USDT and USDC, which are considered the backbone of digital transactions.
With the enactment of the GENIUS law that provides legal clarity for the use of these currencies, we may witness a huge increase in their use, which will in turn lead to an increase in transaction volume on the Ethereum network.

📌 Why is this important?

  • Stablecoins are the primary means of entering and exiting the market.

  • Increased usage on Ethereum means increased demand for gas (ETH) to pay transaction fees.

  • Financial institutions may find Ethereum the most secure and legal environment for expansion.

Layer-2: Ethereum's secret weapon $ETH

Despite criticisms about Ethereum's high fees, Layer-2 solutions like Arbitrum and Optimism have changed the game.
With the Dencun update, transactions have become cheaper and faster, making Ethereum more attractive to users and developers.

📌 The importance of Layer-2 in the race against Bitcoin:

  • Cost reduction opens the door for more users and projects.

  • It allows Ethereum to support hundreds of millions of transactions daily without sacrificing security.

  • It creates a fertile environment for decentralized finance (DeFi), gaming (GameFi), and NFTs.

Institutional Adoption

Bitcoin is often seen as 'digital gold' and a means of storing value, but Ethereum offers real usability, which attracts institutions.

  • Banks and tech companies can build their solutions directly on the Ethereum network.

  • Smart contracts enable the automation of transactions and financial obligations.

  • Institutions are looking for platforms that support innovation, not just value storage.


Comparison between Bitcoin and Ethereum in 2025

If we compare Bitcoin and Ethereum in the current context:

  • In terms of fundamental usage: Bitcoin is often used as a store of value and a hedge against inflation, while Ethereum is a comprehensive platform for running smart contracts and supporting decentralized applications.

  • In terms of updates: the Bitcoin network experiences rare and slow updates, whereas Ethereum sees continuous developments and updates to enhance performance and reduce fees.

  • In terms of institutional support: Bitcoin has attracted institutional interest primarily through ETF funds and long-term storage, while Ethereum has attracted institutions in the areas of DeFi, Web3, NFTs, and even financial institutions building their solutions on the network.

  • In terms of revenue sources: Bitcoin relies solely on transaction fees, while Ethereum combines transaction fees with returns from staking, creating greater demand for the currency.

📌 The message here is that Ethereum has a greater diversity in demand sources, making it more flexible and competitive in any upcoming bull market.

The impact of laws and regulations

With the enactment of the GENIUS law that regulates stablecoins and gives them legal clarity, transaction volumes on Ethereum are expected to double.
This could create an ideal environment for a new launch, especially if central banks start issuing their digital currencies (CBDCs) on standards-compliant networks, such as Ethereum.

Can Ethereum surpass Bitcoin in market capitalization?

Surpassing Bitcoin in total market capitalization (Market Cap) is not an easy task, but it's not impossible:

  • If the price of ETH doubles, supported by institutional adoption and stablecoins, we might see the ETH/BTC ratio rise significantly.

  • An increase in this ratio means that Ethereum is outperforming Bitcoin over a specified period.

  • History shows that Ethereum has previously outperformed Bitcoin in past bull cycles, especially during DeFi and NFT seasons.

Risks and obstacles

Even with all these positives, there are challenges:

  • Competition from other networks like Solana and Avalanche that offer lower fees.

  • Strict regulations that may limit some DeFi activities.

  • Relative centralization in some aspects of development that may concern the crypto community.

However, Ethereum has the advantage of being the older and larger network, giving it the opportunity to adapt and evolve faster than competitors.