Ether extends rally toward record amid demand shift; bitcoin ekes out gains

[Glowing dark background with bitcoin symbol.]
peshkov/iStock via Getty Images

Ether's (ETH-USD [https://seekingalpha.com/symbol/ETH-USD]) price extended its recent bull run toward record highs on Wednesday, outpacing bitcoin (BTC-USD [https://seekingalpha.com/symbol/BTC-USD]), fueled in part by record inflows into ETH-backed exchange-traded funds and the growing wave of companies adopting the token as a core balance sheet asset.

The world's largest altcoin by market cap (ETH-USD [https://seekingalpha.com/symbol/ETH-USD]) advanced 2.7% in the last 24 hours to $4.71K at 9:29 a.m. ET, slightly trailing its all-time high of $4.73K in 2021. Meanwhile, bitcoin (BTC-USD [https://seekingalpha.com/symbol/BTC-USD]) inched up 0.1% to $120.2K, hovering just below its $122.2K July peak.

Other coins on the move include: ExtremeCoin (XT-USD [https://seekingalpha.com/symbol/XT-USD]) +13%, Mantle (MANTLE-USD [https://seekingalpha.com/symbol/MANTLE-USD]) +9.8%, Solana (SOL-USD [https://seekingalpha.com/symbol/SOL-USD]) +5.3%, Cardano (ADA-USD [https://seekingalpha.com/symbol/ADA-USD]) +4.9%, Arbit Coin (ARB-USD [https://seekingalpha.com/symbol/ARB-USD]) +4.7% and Uniswap (UNI-USD [https://seekingalpha.com/symbol/UNI-USD]) +4.5%.

After years in bitcoin's (BTC-USD [https://seekingalpha.com/symbol/BTC-USD]) shadow, ether (ETH-USD [https://seekingalpha.com/symbol/ETH-USD]) is seizing the spotlight as surging spot ETF inflows and corporate treasury buying drive a sharp demand shift. ETH is now up over 40% year-to-date, surpassing BTC's 28% climb.

"ETH treasury companies and ETFs have bought 3.8% of all ETH in circulation in just 2.5 months – double the fastest pace of Bitcoin buying by these sources," Standard Chartered analyst Geoff Kendrick wrote in a note to clients.

He sees ether (ETH-USD [https://seekingalpha.com/symbol/ETH-USD]) surging to $7.50K by the end of the year, up from $4.0K in the prior view, and $25K by end-2028, up from $7.50K in the earlier target. That implies gains of ~60% and 435%, respectively.

"The July passage of the US GENIUS Act, which clears the way for mainstream adoption of stablecoins, is a pivotal change. Stablecoins account for 40% of all blockchain fees today, and more than 50% of stablecoins sit on Ethereum," he wrote.

Earlier on Wednesday, Fundstrat's Tom Lee added ETH [https://seekingalpha.com/news/4484599-fundstrats-tom-lee-standard-chartered-sees-ethereum-soaring] to his “Mag7 & Bitcoin” recommended investment strategies and called it the biggest macro trade over the next 10–15 years.

ETH treasury companies like SharpLink Gaming (SBET [https://seekingalpha.com/symbol/SBET]) +3.4%, 180 Life Sciences (ATNF [https://seekingalpha.com/symbol/ATNF]) +40% and BitMine Immersion Technologies (BMNR [https://seekingalpha.com/symbol/BMNR]) +8.7% added to recent rallies in premarket trading.

Strategy (MSTR [https://seekingalpha.com/symbol/MSTR]), the largest corporate holder of bitcoin (BTC-USD [https://seekingalpha.com/symbol/BTC-USD]) saw its stock edge up 0.9%, while crypto exchange Coinbase Global (COIN [https://seekingalpha.com/symbol/COIN]) perked up 1.8% and bitcoin miner Riot Platforms (RIOT [https://seekingalpha.com/symbol/RIOT]) increased 1.1%.

MORE ON BITCOIN USD, ETHEREUM USD

* Bitcoin: The Last Rally Is Loading [https://seekingalpha.com/article/4812498-bitcoin-last-rally-loading]
* Bitcoin Rejects The Test Of Its All-Time Highs, Is A Double Top In The Making? [https://seekingalpha.com/article/4812326-bitcoin-rejects-test-all-time-highs-double-top]
* Bitcoin: The Next Few Months Could Be Epic [https://seekingalpha.com/article/4812132-bitcoin-the-next-few-months-could-be-epic]
* Fundstrat's Tom Lee, Standard Chartered sees Ethereum soaring [https://seekingalpha.com/news/4484599-fundstrats-tom-lee-standard-chartered-sees-ethereum-soaring]
* Fundamental Global gains as co eyes 10% ethereum stake, now holds 47,331 ETH [https://seekingalpha.com/news/4483330-fundamental-global-gains-as-co-eyes-10-ethereum-stake-now-holds-47331-eth]