Key points:
Bitwise analysts said new US crypto laws favor Ether, boosting its role in tokenization and stablecoins.
Institutions pile into ETH, with staking ETFs expected to add $20 billion-30 billion yearly.
Ether (ETH) was last week’s top performer, as Bitwise analysts called it a “watershed moment” driven by new US crypto laws and a market rotation. The ETH/BTC ratio surged 27%, sparking a 6% decline in Bitcoin dominance and signaling a capital shift toward altcoins.
In a weekly market update, Bitwise analyst André Dragosch and Ayush Tripathi said ETH’s rally validates the firm’s thesis on the decreasing valuation gap between ETH and BTC. Ether’s rise was assisted by macroeconomic tailwinds, including the Senate’s bipartisan approval of the Genius Act and House passage of the Clarity Act, both signed into law last week. These measures clarified regulatory oversight and set the stage for broader institutional adoption.
According to Bitwise, the Ethereum network is uniquely positioned to benefit, hosting 50% of the stablecoin market cap, crossing $140 billion on Tuesday, and 55% of tokenized asset value. Legislative clarity is expected to unlock further capital formation and product innovation across Ethereum-native ecosystems.
📊MARKET UPDATE: #Stablecoin supply on #Ethereum reaches new all-time high, crossing $140 billion on July 22. The total supply on the network has nearly doubled since early 2024 lows. 👀
(h/t: @tokenterminal) pic.twitter.com/nW0ohlsDID
— Cointelegraph Markets & Research (@CointelegraphMT) July 22, 2025
Derivative markets also signaled strong demand, with open interest across top exchanges jumping by $6 billion, while CME futures hit record highs. Meanwhile, Ether exchange-traded products (ETPs) recorded $2.1 billion in inflows, and Ether treasury holdings surged after The Ether Machine and Dynamix Corp SPAC deal added 400,000 ETH.
Despite modest volatility concerns, the analysts noted ETH’s fundamentals remain intact. The decline in the SOL/ETH ratio suggests that institutions favor Ethereum as the base layer for tokenization and TradFi integration.
Related: Ethereum whale nets $9.87M profit as ETH snaps 8-day winning streak
Could Ether gain ground as a Store of Value?
Onchain analysis platform iCrypto said that Ether could gradually become a Store of Value similar to Bitcoin (BTC), due to the recent influx of institutional capital, staking yield and the upcoming staking exchange-traded funds (ETFs). The platform highlighted how institutions have doubled down on ETH as a strategic treasury asset.
Bit Digital sold all its Bitcoin holdings and allocated $172 million to purchase over 100,000 ETH, making it one of the largest institutional ETH holders. BTCS Inc. boosted its ETH position to 29,122 ETH after a 221% increase since late 2024. BitMine Immersion Technologies doubled its holdings to 163,000 ETH, while SharpLink now holds over 360,807 ETH, second only to the Ethereum Foundation.
This growing demand is also reflected in ETH staking interest. As of July, 51 organizations have disclosed staked ETH holdings totaling 1.26% of Ether’s total supply.
The launch of Ether staking ETFs is expected by the end of Q3 2025. While spot ETH ETFs have pulled $70 million in daily inflows over the past year, adding a 3–4% staking yield could attract an extra $20–30 billion yearly.
Related: GENIUS’ ban on stablecoin yield will drive demand for Ethereum DeFi — Analysts
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
