Ethereum is making headlines as Ether (ETH) surges 56% in July, marking its strongest monthly performance in nearly three years. Driven by record ETF inflows and bullish market sentiment, this rally has drawn comparisons to the high-growth tech stocks of the 1990s. Let’s dive into the details behind this explosive growth.
Ethereum News: What’s Driving the 56% Surge?
Ether closed July at $3,862, up from $2,468 at the start of the month, according to CoinGecko data. This marks the first time since July 2022 that ETH has delivered a monthly return exceeding 50%. The rally is closely tied to a 19-day net inflow streak into spot Ether ETFs, with total inflows surpassing $5.37 billion. Key highlights include:
- Record single-day inflow of $727 million on July 16.
- BlackRock’s iShares Ethereum ETF hitting $10 billion in assets under management in just 251 days.
- Ether ETFs outpacing Bitcoin ETFs in inflows for six consecutive days.
Bullish Sentiment: Is Ethereum the New Tech Stock?
Bloomberg analyst Eric Balchunas likened Ether’s performance to the tech stocks of the 1990s, citing accelerating adoption and network growth. Unlike Bitcoin, which is often seen as “digital gold,” Ethereum’s utility in the blockchain ecosystem positions it as a high-growth technology play. However, skeptics point to muted on-chain activity, with network revenue growing just 3% in the past month.
ETF Inflows: A Game-Changer for Ethereum
The surge in Ether ETFs highlights shifting dynamics in the crypto market. Here’s a quick comparison of Ethereum’s current performance vs. its 2021 peak:
| Metric | November 2021 | July 2025 |
|---|---|---|
| Market Cap | $300 billion | $466 billion |
| Monthly Revenue | $1.5 billion | $764 million (annualized) |
Challenges and Regional Speculation
While the ETF-driven rally is impressive, 90% of the price action occurred during Asian trading hours, suggesting regional speculation rather than broad-based adoption. Markus Thielen of 10x Research notes that on-chain metrics haven’t kept pace with the price surge, raising questions about sustainability.
Conclusion: What’s Next for Ethereum?
Ethereum’s July performance underscores the growing influence of ETFs and institutional interest in crypto. While the rally lacks strong on-chain support, it reflects optimism about blockchain’s future. Whether this momentum continues will depend on broader adoption and network upgrades.
Frequently Asked Questions (FAQs)
- Why did Ethereum surge 56% in July?
The surge was driven by record ETF inflows and bullish market sentiment, with Ether ETFs attracting over $5.37 billion. - How does Ethereum’s performance compare to Bitcoin?
Ether ETFs briefly outpaced Bitcoin ETFs in inflows, highlighting shifting investor preferences. - Is Ethereum’s growth sustainable?
While ETF inflows are strong, on-chain activity remains muted, raising questions about long-term sustainability. - What role did Asian markets play in the rally?
90% of the price action occurred during Asian trading hours, suggesting regional speculation.
