Here are 4 reasons why Ethereum will continue to grow

Why is Ethereum growing
Matt Hougan began his ETH forecast by emphasizing that in recent weeks Ethereum has been experiencing a "demand shock." After a four-month decline at the beginning of 2025, the price sharply reversed: in a month, the increase exceeded 50%, and from the April lows, Ether has gained about 150%.

The main reason for the growth of ETH is the rapid influx of capital into spot exchange products (ETP) and the emergence of corporate treasuries in the market that are purchasing Ethereum for reserves. Until mid-May 2025, the author noted, there were no such support factors for the cryptocurrency's price.

ETP on Ethereum was launched in July 2024, but interest was moderate. By May 15, 2025, about 660,000 ETH had been redeemed for exchange-traded products with an influx of investments of about $2.5 billion. During the same period, the network issued about 543,000 ETH. This means that supply and demand were roughly equal, so the price stagnated or declined.

The situation changed sharply after May 15. Inflows into spot ETPs on Ethereum exceeded $5 billion. At the same time, several companies, including Bitmine and SharpLink, announced strategies to allocate part of their reserves into Ethereum.

4 reasons for the continued growth of Ethereum
That's why Matt Hogan is confident that the trend will continue and Ethereum will grow:

1. So far, there is no balance of investors in ETP on Ethereum and Bitcoin. The expert believes that "catch-up" purchases from managers who have not yet invested in ETH may support the growth of the cryptocurrency's price, as was the case with BTC.

2. Interest in stablecoins and the tokenization of traditional assets is growing. A large part of this infrastructure is already operating on Ethereum and its L2 solutions. Activity on the network is driving structural demand for ETH as "fuel" and a collateral asset.

3. The trend of companies converting their reserves to ETH may accelerate. So far, the shares of companies that have chosen this path are trading at a premium to the net value of their crypto assets. Management has an incentive to increase positions in Ethereum and issue new securities.

4. The supply is limited. After the network transitioned to Proof-of-Stake, net issuance has decreased. This year, around 0.80 million ETH may be issued. A portion of the coins is burned under EIP-1559, a significant share is staked and does not participate in circulation. Against this backdrop, the projected purchases of $20 billion (, approximately 5.33 million ETH at current prices ), indicate a multiple excess of demand over supply — about 7:1.

Features of the position of ETH that you need to know
It is important to remember that Ethereum differs from Bitcoin: it does not have a hard cap on issuance and its economy is more complex. In the short term, the price will be driven by demand, which today exceeds supply. According to the author, the advantage is clear.

Regulatory, technological, and macroeconomic risks, according to him, remain, but they are systemic in nature for the entire crypto sector, while the specific institutional demand for Ethereum is only gaining strength.

If the current inflows persist, ETP and corporate balances may continue to buy millions of ETH over the next year. As long as inflows do not match emissions or significant profit-taking does not begin, the fundamental conditions for price growth remain favorable.

The expert advises market participants to monitor the dynamics of assets in ETP, the emergence of new companies that aim to invest a portion of their assets in Ethereum, and the metrics of network activity — it is precisely there that the next price impulse is formed.