Ethereum Records Historic Institutional Inflows, Surpasses $172B Stablecoins

Ethereum has demonstrated significant strength in 2025, reaching new all-time highs near $4,900 before a brief correction. Analysts and institutions attribute this bullish momentum to improving fundamentals, decreased circulating supply due to staking, and rising demand from ETFs and decentralized autonomous trusts, which collectively account for over 8% of Ethereum's market capitalization. Institutional interest is highlighted by doubled fund holdings and increased whale accumulation, alongside record on-chain activity such as smart contract calls and transaction volumes, reinforcing Ethereum’s role as the leading programmable blockchain. Despite this, some challenges remain, including network congestion and high transaction fees, which have prompted investors to explore alternative projects like Remittix and BlockDAG, the latter launching a testnet aiming to offer scalable, gasless transactions. While Ethereum's near-term gains may face resistance due to a high concentration of smart money and liquidity constraints from staking, long-term outlooks remain optimistic with forecasts targeting $6,000 by late 2025 and potentially $10,000 by 2026. The crypto market overall remains cautious ahead of upcoming Federal Reserve decisions, with equities rallying but cryptocurrencies showing mixed momentum.