In recent days, Ethereum's price has shown significant growth, setting it apart from other cryptocurrencies. The main reasons for this success are linked to increasing institutional interest and limited supply.
Reasons for Ethereum's Price Surge
Currently, Ethereum is experiencing impressive growth, with a 19% increase over the past week and a 64% increase over the month, significantly outperforming cryptocurrencies like Bitcoin at 1.7% and XRP at 21.1%. After its April 2025 low, Ethereum has surged by over 150%. A key factor influencing this growth has been the noticeable interest from institutional investors. Following the approval of spot Ethereum ETFs in July 2024, interest in the asset remained low, but it began to rise at the end of May 2025.
Ethereum Supply-Demand Gap
While the demand for Ethereum has soared, its supply growth has remained extremely limited. Since over 2.83 million ETH were purchased by institutional and corporate buyers, the network has created only 88,000 new units of ETH, yielding a supply-demand gap of more than 32 to 1. Experts emphasize that this mismatch is a key reason behind the rising ETH price.
Ethereum Price Forecast for 2025
According to analysts' forecasts, demand for Ethereum may further increase in the next 12 months, potentially leading to an influx of $20 billion via ETFs and corporate treasuries, equating to approximately 5.33 million ETH. Meanwhile, the network is projected to issue only 800,000 ETH. This tight supply may maintain positive price dynamics and possibly allow ETH to reach new all-time highs.
The current surge in Ethereum's price is driven by strong institutional demand and constrained supply. If these trends continue, ETH may continue to show positive market performance.
