TradingKey - On August 10, Ethereum (ETH), the world’s second-largest cryptocurrency, broke through $4,300, marking its first close above $4,000 in 2025 and reaching its highest level since late 2021. The rally — a 24% weekly gain — outpaced all major crypto peers, including Bitcoin (+6%), XRP (+9%), BNB (+8%), and Dogecoin (+18%).

Ethereum Price Chart, Source: TradingKey

A Catalyst-Rich Week

After a period of consolidation in July, Ethereum’s resurgence was fueled by two key developments:

• A favorable regulatory signal from the U.S. SEC on liquid staking
• Continued institutional accumulation through corporate Ethereum treasuries

SEC Clarity Boosts DeFi

On Tuesday of last week, the U.S. Securities and Exchange Commission (SEC) issued a statement clarifying that “liquid staking” — a mechanism allowing users to earn staking rewards while still using their staked assets in decentralized finance (DeFi) protocols — does not constitute the offer or sale of a security under the 1933 Securities Act.

This means:

• Liquid staking tokens (LSTs) like stETH or rETH can be issued and traded without full securities registration
• Institutions can more easily package LSTs into financial products, such as ETFs or structured notes

Blockchain experts interpreted the move as a major win for Ethereum and DeFi, reducing regulatory uncertainty and paving the way for broader institutional adoption.

Corporate Treasury Demand Grows

The rise of “ETH treasury” companies — firms that hold Ethereum on their balance sheets — has become a key source of demand.

According to strategicethreserve.xyz, 64 entities now hold Ethereum as a strategic reserve asset, with a combined value of $13 billion, representing 2.51% of ETH’s total supply.

Top holders include Bitmine Immersion (BMNR), SharpLink Gaming (SBET) and The Ether Machine.

Standard Chartered forecasts that corporate ETH holdings could eventually reach 10% of total supply, signaling significant long-term accumulation potential.

Ethereum vs. Bitcoin: The Shift in Momentum

While Bitcoin has repeatedly hit new all-time highs in 2025, Ethereum had lagged, with its price still over 10% below its November 2021 peak of $4,867.

But VanEck notes a structural shift:

“Bitcoin dominance has started to fall meaningfully as banks, fintechs, and corporates embrace stablecoins, many of which will be settled on open-source blockchains like Ethereum. Capital markets are still very open to digital-asset treasury companies, which is adding buying pressure in the ETH spot market.”

This growing on-chain settlement demand is increasing pressure on the Ethereum network — and boosting ETH’s utility and value proposition.

On-Chain Activity Hits Record Highs

Last week, Ethereum’s 7-day average daily transaction volume reached 1.74 million, a new all-time high.Total transactions in July 2025 hit 46.67 million, the highest monthly volume ever recorded.

Presto Research analysts said:

“Ethereum’s daily transaction count hitting an all-time high reflects a surge in DeFi activity, with stablecoins at the center of it. Growing interest in yield strategies—especially in anticipation of a rate cut—has led to more on-chain transactions, from point farming to treasury deployments.”

Still Room to Run?

Kronos Research argues that U.S. regulatory clarity and rising institutional interest have reignited demand for Ethereum — but the price may not yet reflect the full extent of on-chain growth.

“The ETH price is moving more cautiously. There's growing confidence behind the scenes, but markets are still calibrating.” 

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