Ether Posts Strong Monthly Gains Amid ETF Inflows, Though Network Activity Shows Limited Growth

• Ether’s July rally is driven by a 19-day streak of ETF inflows totaling over $5.37 billion.

• BlackRock’s iShares Ethereum ETF reached $10 billion in assets in just 251 days, highlighting growing institutional interest.

• Despite price gains, Ethereum network revenue and activity remain subdued, with only modest increases over the past six months.

Ether surged 56% in July on strong ETF inflows and institutional buying. Discover how ETH’s price rally contrasts with network activity trends. Read more on COINOTAG.

What Factors Drove Ether’s 56% Surge in July 2025?

Ether’s remarkable 56% gain in July 2025 is primarily attributed to sustained inflows into spot Ether ETFs and strategic buying by ETH treasury firms. Starting the month at $2,468, ETH climbed to $3,862, marking its best monthly return in three years. This surge reflects growing investor confidence and expanding adoption, echoing the rapid growth phases seen in 1990s tech stocks.

How Have ETF Inflows Impacted Ethereum’s Price Momentum?

Spot Ether ETFs experienced a historic 19-day net inflow streak in July, accumulating over $5.37 billion. The largest daily inflow occurred on July 16, with nearly $727 million entering the funds. BlackRock’s iShares Ethereum ETF notably became the third-fastest ETF to surpass $10 billion in assets under management within 251 days. For six consecutive days in July, Ether ETF inflows outpaced those of Bitcoin ETFs, signaling shifting investor preferences.

Why Is Ethereum Network Activity Lagging Despite Price Gains?

Despite Ether’s price rally, Ethereum’s network activity and revenue growth remain modest. Markus Thielen, CEO of 10x Research, noted that Ethereum’s revenue has not increased meaningfully in the past six months, with only a 3% rise in revenue and a 5% increase in network activity last month. He highlighted that 90% of recent price action originated from the Asian time zone, suggesting regional trading dynamics influence the market.

How Does Current Ethereum Revenue Compare to Past Performance?

In November 2021, Ethereum generated $1.5 billion in monthly revenue on a $300 billion market cap, equating to an attractive 6% annual yield for institutional investors. Currently, with a market capitalization of $466 billion, Ethereum’s annual revenue stands at approximately $764 million, less than half of its previous yield. This divergence raises questions about the sustainability of price gains without corresponding network fundamentals.

Frequently Asked Questions

What are the main drivers behind Ether’s recent price rally?

Ether’s price rally is mainly driven by strong inflows into spot Ether ETFs, institutional buying, and growing investor confidence, pushing ETH to a three-year high in July 2025.

How sustainable is Ethereum’s price increase given current network activity?

While price gains are significant, Ethereum’s network revenue and activity show only slight growth, suggesting that the price rally may not yet be fully supported by fundamental network usage.

Key Takeaways

• Record ETF inflows: Spot Ether ETFs saw a 19-day net inflow streak totaling $5.37 billion in July.
• Institutional interest: BlackRock’s iShares Ethereum ETF reached $10 billion in just 251 days.
• Network fundamentals lag: Ethereum’s revenue and activity growth remain modest despite price surges.

Conclusion

Ether’s 56% surge in July 2025 highlights strong institutional demand and ETF inflows, reflecting growing confidence in Ethereum’s future. However, the modest increase in network activity and revenue suggests that price gains are currently driven more by investment flows than underlying protocol usage. Monitoring these dynamics will be crucial for assessing Ethereum’s long-term trajectory.