13h05 ▪
4
min read ▪ by
Boosted by record inflows into ETFs, Ethereum has just recorded its strongest monthly rally since 2022. This spectacular rebound propels ETH to the forefront of portfolios, challenging the dominant Bitcoin narrative. Is Ethereum becoming the must-have crypto asset, akin to tech stocks in the 1990s? Or is institutional adoption masking a deeper fundamental weakness?
In Brief
Ethereum jumped 56% in July, driven by record ETF inflows, reaching $5.37 billion in 19 days.
ETH is being compared to a 90s tech stock, surpassing bitcoin in institutional interest and market narrative.
Ethereum network fundamentals remain weak, with revenue up only 3%, fueling doubts about the sustainability of the crypto rally.
Record Inflows: The Ether ETF Triggers a Historic Rush on ETH
In July, ETH soared by 56%, reaching a peak of $3,862. It’s the first time since 2022 that the cryptocurrency has posted a monthly gain of over 50%. This rally was driven by unprecedented momentum in the ETF market, with 19 consecutive days of net inflows totaling more than $5.37 billion.
July 16 stood out with a record single-day inflow of $727 million. Riding this wave, BlackRock’s Ethereum ETF (iShares ETHA) became the third-fastest crypto ETF in history to surpass $10 billion in assets under management—achieved in just 251 days.
Ethereum Outpaces Bitcoin: A New Crypto Leader in the Making?
According to Eric Balchunas, senior ETF analyst at Bloomberg, this rally is repositioning Ethereum in the institutional narrative. Unlike Bitcoin, still seen as a form of digital gold, ETH is beginning to be viewed more like a 90s growth tech stock.
This analogy suggests that Ethereum could become a speculative vehicle for mass blockchain adoption. Its current momentum goes well beyond that of a simple store of value. The market now seems to treat it as an innovative asset, with growth potential structured around its crypto network.
Prix en orbite, réseau sous-performant : faut-il croire à ce rallye ETH ?
But the euphoria isn’t universal. Markus Thielen, CEO of 10x Research, warns that Ethereum’s network revenue grew by only 3% over the month, while on-chain activity increased by just 5%. These modest figures contrast with the exuberance in price action.
More concerning, according to Thielen, 90% of ETH’s price movements in July originated during Asian trading hours. This geographic concentration may point to speculative volatility driven more by short-term crypto dynamics than by network fundamentals.
For comparison, during the previous market peak in November 2021, Ethereum generated $1.5 billion in monthly revenue with a market cap of $300 billion—implying a 6% yield. Today, with a market cap of $466 billion and annual revenues of $764 million, that yield drops to just 1.6%.
ETH may be entering a new chapter—fueled by ETF flows, yet restrained by limited on-chain fundamentals. Can its valuation hold up if capital inflows recede? Discover how July’s crypto flows shed light on Ethereum’s momentum and the road ahead for a potential new bull phase.
Maximize your Cointribune experience with our “Read to Earn” program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
The world is evolving and adaptation is the best weapon to survive in this undulating universe. Originally a crypto community manager, I am interested in anything that is directly or indirectly related to blockchain and its derivatives. To share my experience and promote a field that I am passionate about, nothing is better than writing informative and relaxed articles.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
