🚀 ETH vs BTC: who performed better in the last month and what's next for Ethereum?

If you've been paying attention to the crypto market in the last few weeks, you've already noticed: Ethereum ($ETH) has stolen the spotlight. While Bitcoin ($BTC) performed well (as always), ETH accelerated and went further.

📊 Performance in the last month (up to May 19, 2025):

🟠 Bitcoin (BTC): +25%

🔵 Ethereum (ETH): +40%

But why has ETH moved more than BTC? And is it hinting at something bigger? Follow the thread:

🧠 What drove ETH?


1. ✅ Approval of spot Ethereum ETFs in the US

The SEC's decision to approve spot ETH ETFs was a milestone. This opened the door for institutional investors to truly start entering the asset. This kind of movement had already happened with BTC months earlier, and now it was ETH's turn. Result? Buying pressure up high.


2. 🔧 The Pectra update went live

On May 7, 2025, the Ethereum network underwent one of its biggest updates since the Merge: the highly anticipated Pectra.

This update brought:

Account abstraction (EIP-7702) — Now, wallets function like smart contracts, opening up space for smarter and safer transactions.

More flexible staking (EIP-7251) — The limit per validator jumped from 32 to 2,048 ETH, allowing for large-scale staking.

Improvements in layer 2s (EIP-7691) — Rollups like Arbitrum and Optimism now have more space to operate, with lower costs.

Faster staking withdrawals (EIP-7002) — Validators now have more control to exit the network without relying on the consensus of the beacon chain.


💡 Practical result? The network became more powerful, more scalable, more user-friendly — and the market liked it.


3. 📉 Decreasing supply on exchanges

More and more ETH is being withdrawn from exchanges and sent to cold wallets. When this happens, it's a sign that holders are thinking long-term. And, of course, less supply = more chance of appreciation with increased demand.


4. 💰 DeFi is still the territory of Ethereum

Despite the competition, Ethereum continues to dominate in DeFi. More than 50% of the total value locked (TVL) is still in projects based on the Ethereum network. This shows that, even with faster networks, ETH is still the foundation of Web3.

📈 And now? Will ETH break the last all-time high?

The ATH (All Time High) of Ethereum was around $4,870 (November 2021). Currently (mid-May 2025), it is hovering around $3,200, with a strong upward trend.

What could push ETH beyond its ATH?


🧲 1. Active ETFs with real capital inflow

Now that the ETFs have been approved, it's just a matter of the major players starting to pour money into them. When this happens, it could be a repeat of what we saw with BTC back in January.


🔥 2. Deflationary mechanism in action

Since EIP-1559, part of the transaction fees is burned, reducing supply. With the network being the most used (even more so with L2s), more ETH is disappearing from the market. This is literally fuel for the rise.


🚀 3. Institutional adoption and integration with RWAs

There is more and more talk about the tokenization of real-world assets (Real World Assets), and Ethereum is leading this movement. If governments and central banks tokenize currencies, bonds, and real estate, guess which network they should do this on? Exactly.


🧱 4. More mature ecosystem than ever

The main dApps, DAOs, L2s, games, and infrastructure projects still thrive on Ethereum. The ecosystem is more robust than ever — and this weighs in when investors choose where to place their capital.

🧭 What do I think? ETH could surprise even more!

Ethereum has gone through one of the most important updates in its history, gained ETFs in the US, and continues to be a central piece of the crypto universe. Even after rising 40% in the month, many analysts believe that ETH is still cheap, considering the asset's full potential.

If the ETFs gain traction, if the fundamentals remain solid, and if the macro scenario helps (with interest rate cuts or global recovery), ETH could very well seek — and surpass — its all-time high in the coming months.

Keep an eye on it. 2025 could be the year of Ethereum.

#Ethereum #ETH #Pectra #EthereumUpdate #Crypto #ETFs #DeFi #BTCvsETH #BinanceFeed