Despite a 20% decline earlier this year, Ethereum$ETH
(ETH) is experiencing a notable recovery, driven by significant technological advancements and increasing institutional investment.
✴️Technological Advancements Fueling Growth
In March 2025, Ethereum underwent the Pectra upgrade, its most substantial since 2022. This enhancement improved scalability and user experience, boosting investor confidence. Consequently, ETH surged by 45% in May, surpassing Bitcoin's $BTC
10.7% gain during the same period.
✴️Institutional Investment via ETFs
The approval of spot Ethereum ETFs in July 2024 marked a pivotal moment for institutional investment. BlackRock's iShares Ethereum ETF alone has attracted over $3.2 billion in inflows. In December 2024, Ethereum ETFs saw record monthly inflows of $2.1 billion, nearly doubling November's figures.
Notably, in February 2025, Ether-based ETPs recorded $793 million in weekly inflows, surpassing Bitcoin's $407 million for the first time that year.
✴️Analyst Predictions for 2025
Analysts are optimistic about Ethereum's$ETH trajectory:
🔥TokenPost reports projections of ETH reaching $15,937 by May 2025.
🔥VanEck anticipates a cycle top of $6,000 for Ethereum in 2025.
🔥CoinDesk highlights that Ethereum ETFs have received cumulative net inflows of $577 million since their launch, indicating strong institutional interest.
✅Ethereum vs. Bitcoin:
While Bitcoin reached a record high of $111,816 recently, Ethereum's advancements and growing institutional support position it favorably. The increasing adoption of Ethereum-based ETFs and its central role in decentralized finance suggest a potential for ETH to outperform BTC in the latter half of 2025.
As of now, Ethereum is trading at approximately $2,636.40, while Bitcoin stands at $109,758.
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