Over the past month, Ethereum has dramatically outperformed
Bitcoin—climbing approximately 54%, while Bitcoin managed a more modest 10%
rise. This divergence in performance has caught the attention of both retail
and institutional investors.

Several key drivers are behind Ethereum's explosive
momentum:

  • The GENIUS Act was signed into U.S. law in July 2025, bringing sweeping
    regulatory clarity to digital assets. It particularly supports
    decentralized infrastructure projects like Ethereum, allowing for wider
    use of its blockchain in public and private sectors.

  • Regulatory green lights for spot Ethereum ETFs further accelerated the rally.
    Financial giants like BlackRock, Fidelity, Franklin
    Templeton, and Grayscale have launched ETH-based ETFs with
    significant inflows, marking a major shift in institutional participation.

  • Analysts note that Ethereum’s integration into corporate infrastructure is
    expanding rapidly. According to Cointelegraph, several Fortune 500
    companies have begun testing Ethereum-based rollups and smart contracts to
    automate internal processes and improve transparency.

  • Adding fuel to the fire, ETH surpassed $4,800 in late July, briefly
    testing its previous all-time high, while on-chain metrics such as
    staking deposits and daily active addresses hit multi-month highs. This
    reinforces investor confidence in ETH's long-term value and utility.

  • Meanwhile, Ethereum Layer 2 solutions like Arbitrum and Base are gaining
    massive traction. Coinbase recently reported that Base is seeing higher
    transaction volumes than Ethereum Mainnet on some days—an indication of
    scalability and growing adoption beyond just price speculation.


    In contrast, Bitcoin's gains, while positive, have been more
    muted—mostly driven by macroeconomic factors and continued interest
    in BTC spot ETFs, but lacking the same level of developer activity or
    institutional innovation.

With Ethereum’s role expanding beyond just a cryptocurrency
into a full-scale infrastructure for financial and enterprise systems, its
recent outperformance may be more than just a short-term price movement—it
could signal a fundamental market shift.

$BTC $ETH #bitcoinnews #Ethereum #GENIUSact #fundamentals #August2025