Ethereum (ETH) is witnessing an unexpected rally, despite previously underperforming against Bitcoin (BTC). Bernstein analysts highlight three main factors driving ETH's rise.
Factors Behind Ethereum's Surge
According to Bernstein analysts, the primary factors behind Ethereum's growth include stablecoin usage, institutional adoption, and short liquidations.
Ethereum's Role in Crypto Infrastructure
Analysts noted that Ethereum currently holds 51% of the total stablecoin supply, actively being used for stablecoin payments and tokenized securities.
Institutional Investors Shifting to Ethereum
Analysts indicated that institutional investors who previously focused on Bitcoin and Solana have started to turn to Ethereum, driven by its increasing use.
The unexpected rise of Ethereum underscores its strengthening role in the crypto infrastructure and the increased interest from institutional investors amid broader adoption.