Cathie Wood claims Ethereum is gaining traction as the preferred blockchain for institutional use.

    by VT Markets
    /
    Aug 13, 2025
    Ethereum is becoming the top blockchain for businesses because more people are using it. Big platforms like Coinbase and Robinhood are building their Layer 2 networks on Ethereum. It also holds a large part of the stablecoin market, showing its value in finance. Unlike Bitcoin, Ethereum allows its treasuries to be staked for earning yields. Even though it might be more expensive and slower, Ethereum provides benefits in decentralization and security. These factors support the idea that Ethereum is likely to become the favored protocol for large institutions. Ark Invest has recently made a big investment in Ethereum, marking its first major role in the cryptocurrency. They also invested in Tom Lee’s $BMNR, known as the largest Ethereum treasury in the world, which boosts Ethereum’s reputation in the blockchain space. Ethereum is securing its status as the crucial protocol for institutions, which suggests a positive outlook for the upcoming weeks. Major financial players are actively developing on the network, validating its long-term value. Recent data shows a 15% increase in the number of wallets holding over 1,000 ETH in the second quarter of 2025, confirming rising institutional interest. The ability to stake ETH and earn yields is a major benefit attracting large investors. Unlike many other digital assets, this feature allows productive use of treasury funds. As of August 2025, over 30% of all ETH is staked on the Beacon Chain, up from 26% at the start of the year. Layer 2 networks built on Ethereum, like those from Coinbase and Robinhood, are experiencing explosive growth, creating a lively ecosystem. This activity is driving strong demand for ETH as a settlement and data availability layer. The total value locked (TVL) in these Layer 2 solutions has exceeded $50 billion, highlighting robust adoption by users and developers. For traders focusing on derivatives, this environment offers opportunities for potential gains. We should think about buying call options or setting up bull call spreads for the October and December 2025 expirations to take advantage of a possible price increase. The strengthening fundamentals are likely to outweigh concerns about network costs, which Layer 2 solutions are addressing. This situation reminds us of the positive sentiment change in late 2024, after the initial ETF approvals led to a lasting rally. We should keep an eye on the support levels set during the July 2025 consolidation, as breaking above recent highs could trigger a significant move upward. The market seems prepared for a rise toward the all-time highs from 2024. When major asset managers take large positions, it’s a strong signal we should take seriously. This is also supported by market data showing that digital asset investment products have seen seven consecutive weeks of inflows, totaling over $2 billion. A significant amount of this new capital has gone into Ethereum-focused funds, indicating strong institutional support building up.

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