Exploring the Potential of Ethereum and Other Cryptocurrencies | August 2025

A brief overview of recent developments in the world of Ethereum and alternative cryptocurrencies. These thoughts are meant to provide a general overview rather than a detailed analysis.

Since the beginning of May, Ethereum and the wider cryptocurrency market have experienced significant movements. Following the Pectra Upgrade on May 9th, Ethereum began to rally and outperform other cryptocurrencies. This surge was not solely due to the upgrade itself changing Ethereum’s fundamental value but also a result of Ethereum’s previous underperformance and low sentiment.

The implementation of the GENIUS Act in the United States marked a significant milestone for Ethereum. This act provides regulatory approval for U.S. banks and financial institutions to issue payment stablecoins and custody digital assets. While not directly authorizing tokenized deposits or mandating blockchain-based ledgers, the GENIUS Act lays the groundwork for future innovations in the crypto space.

With Ethereum already dominating stablecoin settlement and hosting a large portion of tokenized market assets, expectations have shifted towards Ethereum being the primary beneficiary of the GENIUS Act. Projects like JPMorgan’s tokenized deposit initiative on Base further support the idea that banks are looking to leverage Ethereum’s infrastructure for institutional settlement.

Structural ETF inflows, combined with the factors mentioned above, continue to support Ethereum’s growth. The ETH/USD and ETH/BTC ratios suggest that Ethereum is still undervalued in comparison to historical averages, making it an attractive trade option. Although market fluctuations are expected along the way, these present opportunities to increase exposure to Ethereum.

Additionally, Ethereum treasury companies are rapidly accumulating ETH, leading to short-term supply imbalances that support price levels. Inflows into Ethereum ETFs and ETPs significantly outpace Bitcoin, signaling continued strength in the Ethereum narrative.

As for the broader altcoin market, recent cycles have been more selective in terms of performance. Coins like Solana, Hyperliquid, Chainlink, and XRP have rallied due to specific reasons unique to each coin. Bitcoin dominance has been declining, indicating a shift towards alternative cryptocurrencies. This rotation into distinct pockets of assets suggests that the market is transitioning into a different phase.

Solana, in particular, presents an intriguing technical setup with pending SEC decisions on Spot ETFs potentially impacting its price movement. The cryptocurrency has seen improvements in transaction throughput and efficiency, making it an attractive option for investors.

While it is still too early to determine if we are in a full-blown alt season, the current market conditions suggest a shifting landscape with unique opportunities for certain coins. Bitcoin’s stagnant price alongside the rally of select altcoins points to a period of rotation in the cryptocurrency market.