Ethereum Soars 56% in July, Outshining Bitcoin in a Key Area
Boosted by record inflows into ETFs, Ethereum has recorded its strongest monthly rally since 2022. This spectacular rebound propels ETH to the forefront of portfolios, challenging Bitcoin’s dominant narrative. Is Ethereum becoming the must-have crypto asset, akin to tech stocks in the 1990s? Or is institutional adoption masking deeper fundamental weaknesses?
In Brief
- Ethereum jumped 56% in July, driven by record ETF inflows totaling $5.37 billion in 19 days.
- ETH is increasingly compared to a 90s tech stock, surpassing Bitcoin in institutional interest and market narrative.
- Ethereum network fundamentals remain weak, with revenue up only 3%, raising doubts about the rally’s sustainability.
Record Inflows: The Ether ETF Triggers a Historic Rush on ETH
In July, Ethereum (ETH) soared by 56%, reaching a peak price of $3,862. This marks the first time since 2022 that ETH posted a monthly gain exceeding 50%. The 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, which is still widely seen as digital gold, ETH is increasingly viewed as a 90s growth tech stock analog.
"Ethereum could become a speculative vehicle for mass blockchain adoption. Its momentum goes beyond a simple store of value, with growth potential structured around its crypto network."
This analogy suggests Ethereum is evolving into an innovative asset with growth potential, shifting the market narrative beyond Bitcoin’s traditional role.
Price Soars, Network Underperforms: Should We Trust This ETH Rally?
However, the euphoria is not universal. Markus Thielen, CEO of 10x Research, warns that Ethereum’s network revenue grew by only 3% over July, while on-chain activity increased by just 5%. These modest figures contrast sharply with the exuberance in price action.
More concerningly, 90% of ETH’s price movements in July originated during Asian trading hours, suggesting speculative volatility driven more by short-term crypto dynamics than by fundamental network strength.
For context, 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 has dropped to just 1.6%.
ETH may be entering a new chapter—fueled by ETF flows but restrained by limited on-chain fundamentals. The key question remains: can its valuation hold if capital inflows recede?
Discover how July’s crypto flows shed light on Ethereum’s momentum and the potential road ahead for a new bull phase.
Frequently Asked Questions (FAQ)
Ethereum's July Rally
Q: What drove Ethereum's significant price increase in July?
A: Ethereum's price surge of 56% in July was primarily driven by record inflows into Ethereum ETFs, totaling over $5.37 billion across 19 days.
Q: How does Ethereum's performance in July compare to Bitcoin?
A: Ethereum significantly outperformed Bitcoin in July, showing a 56% gain compared to Bitcoin's performance. This has led to discussions about Ethereum potentially becoming the "must-have" crypto asset, akin to 90s tech stocks.
Q: Are there concerns about the sustainability of Ethereum's rally?
A: Yes, concerns exist due to the modest growth in Ethereum's network fundamentals. Network revenue increased by only 3% and on-chain activity by 5% in July, contrasting with the significant price appreciation. Additionally, a large portion of ETH's price movements occurred during Asian trading hours, suggesting speculative volatility.
Q: How has Ethereum's yield changed compared to its previous market peak?
A: At the previous market peak in November 2021, Ethereum had a market cap of $300 billion and generated $1.5 billion in monthly revenue, implying a 6% yield. Currently, with a market cap of $466 billion and annual revenues of $764 million, the yield has fallen to approximately 1.6%.
Crypto Market AI's Take
The substantial inflows into Ethereum ETFs highlight a growing institutional interest that views ETH not just as a store of value, but as a growth asset with potential for broad blockchain adoption. This "tech stock" analogy suggests a shift in market narrative, moving beyond Bitcoin's "digital gold" status. However, as the article points out, the disconnect between price action and on-chain fundamentals for Ethereum is a critical factor to monitor. At Crypto Market AI, we leverage advanced AI agents and machine learning models to analyze both market sentiment and fundamental network health to provide a more holistic view of asset performance. Our AI-driven market analysis tools aim to identify such divergences early, helping investors make more informed decisions by understanding the true underlying value drivers beyond speculative inflows.
More to Read:
- Why Ethereum is Outperforming Bitcoin
- Ethereum's July Rally Fueled by Fresh Inflows, Not Bitcoin Rotation
- Understanding Ethereum's Network and Its Future Potential
Originally published at Cointribune on Fri, 01 Aug 2025.
