Compilation: Vernacular Blockchain

Ethereum is once again stirring up a frenzy, but this time it is no longer in the slow and steady style of the past. What we are seeing is a vertical surge in prices, billions of dollars flowing in, and a trend of the entire market leaning towards Ethereum.

If you are curious why Ethereum suddenly surged, let's analyze the real reasons behind this rise and why the bulls may have just begun to gain strength.

1. Surge in Demand for Spot Ethereum ETF

Last week, the net inflow of US spot ETFs reached $2.18 billion, setting a new historical high for weekly net inflows. This wave of capital flow is unstoppable, with various investors from retail to hedge funds and asset management companies all buying in.

More importantly, this has fundamentally changed the demand dynamics. These ETFs need to be backed by real Ethereum ( rather than paper derivatives ) to support their shares. This means that to meet the demand, the market must continuously purchase Ethereum on the spot market.

2. Smart money is buying in

With the rise of the "Shanzhai coin reserve" model, listed companies have begun to establish Ethereum reserves to gain exposure.

For example, supported by Peter Thiel's Founders Fund, and led by Tom Lee's mining and reserve company BitMine Immersion Tech, which currently holds over 300,000 Ethereum and continues to accumulate. SharpLink Gaming follows closely, holding over 280,000 Ethereum as its core reserve asset.

Why? Because Ethereum is no longer just an asset, but an infrastructure. It is the pillar of tokenization, stablecoins, real-world assets ( RWA ), and AI-driven automation. This is an opportunity that forward-thinking fund managers cannot afford to miss.

3. On-chain indicators strongly bullish

Let’s broaden our perspective and take a look at the fundamentals.

• In July alone, over 317,000 Ether (, approximately 1.2 billion USD ), was withdrawn from trading platforms. This is not a behavior of traders rotating, but rather an accumulation behavior.
• Currently, about 30% of the total supply of Ethereum has been staked, locking up nearly 36 million Ethereum, making it unable to circulate in the market.
• Network activity (, especially in Layer 2 networks ) L2(, Rollups, and staking-related transactions ) is rapidly increasing, indicating that real usage demand is growing.

4. Shift in U.S. Policy Direction

The recently signed "GENIUS Act" brings much-anticipated clarity to the market for institutions.

More importantly, this marks the fact that Washington has finally begun to distinguish Ethereum and crypto infrastructure from speculative meme coins. Ethereum is seen as the foundation for tokenized finance, stablecoin settlement, and programmable currency.

What is even more exciting is that if the U.S. Securities and Exchange Commission ( SEC ) approves the staking feature of a spot Ethereum ETF, it will further open the floodgates for capital inflow. Giants like BlackRock (, Fidelity (, and Grayscale ) are all set to go.

This is not a meme coin craze. This is the institutional era of Ethereum, and it has only just begun.

Now might also be the time to pay attention to other investment opportunities related to Ethereum.

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