Ethereum Sees Institutional Interest Surge, Outperforming Bitcoin Amid Shift in Crypto Treasury Strategies

• Ethereum outperformed Bitcoin in the last 90 days.

• Institutional interest was the main driver of Ethereum’s rise.

• BitMine recently became the largest ETH holder.

Ethereum has surged 64% in the last 90 days, driven by institutional interest, significantly outperforming Bitcoin. Discover the latest trends in crypto.

What is Driving Ethereum’s Recent Surge?

Ethereum is experiencing a remarkable turnaround with a 64.38% increase in value over the past 90 days, rising from $1,808 to $3,684. In contrast, Bitcoin’s growth was only 10.72% during the same timeframe, moving from $94,748 to $115,375.

How Are Institutions Influencing Ethereum’s Growth?

Rising institutional interest is the primary catalyst behind Ethereum’s surge, according to Shawn Young, Chief Analyst of MEXC Research. He noted significant treasury buys and investments in various altcoins. “The total ETH held by listed firms has surged nearly tenfold since late 2024,” said Young, indicating a shift from a Bitcoin-only treasury era.

For instance, on August 4, BitMine’s Ethereum holdings reached $2.9 billion, making it the largest corporate holder of the asset. This aggressive strategy highlights a broader trend where major financial institutions are diversifying their crypto portfolios beyond Bitcoin, with Ethereum being a prime choice.

Ethereum Recovers from Slump on Digital Oil Narrative

After a period of slow performance, Ethereum’s narrative shifted significantly. In 2024, Ethereum’s price increased by 53%, while Bitcoin saw a 113% gain. Concerns over Ethereum’s tokenomics and falling on-chain volumes contributed to inflationary pressures on ETH’s price.

However, the “digital oil” designation has gained traction, with investors increasingly recognizing Ethereum’s role in powering the largest DeFi ecosystem.

Key Takeaways

• Ethereum’s performance is driven by institutional interest: Major financial institutions are diversifying their portfolios.
• BitMine’s aggressive strategy: The firm amassed significant ETH holdings in a short period.
• Changing narratives: Ethereum’s role in DeFi is reshaping its market perception.

Conclusion

Ethereum’s recent surge, driven by institutional interest and a changing narrative, highlights its growing importance in the crypto market. As institutions diversify their portfolios, Ethereum stands out as a key asset, paving the way for future growth.

Frequently Asked Questions

Why is Ethereum outperforming Bitcoin?

Ethereum is outperforming Bitcoin due to increased institutional interest and significant treasury buys, which have driven its price up substantially.

What is the “digital oil” narrative?

The “digital oil” narrative refers to Ethereum’s growing role in powering decentralized finance (DeFi), attracting investor interest beyond traditional cryptocurrencies.