What has driven the resurgence of Ethereum?

- Ethereum has risen nearly 45% in the past two weeks, driven by regulatory clarity, increased institutional demand, and favorable supply dynamics, according to analyst Bernstein(.
The GENIUS Act, signed into law by the President of the United States, has recognized stablecoins as legal digital cash. This shift has brought renewed attention to Ethereum, which is the primary blockchain supporting stablecoin transactions.
More than 60% of the total supply of USDC is held on Ethereum. The platform also holds about 33% of the $25 billion tokenized real asset market, primarily focused on tokenized money market funds. The largest of these is BlackRock's $2.8 billion BUIDL fund, which is built on Ethereum.
Ethereum's role as an investment asset has been strengthened due to its staking yield, which is currently approximately 2.9% when calculated in ETH.
All stablecoin and tokenized asset transactions will incur gas fees that need to be paid in ETH. These transaction fees form the basis for validator rewards and staking returns.
With the growth of online activities and rising return expectations, more staking is encouraged. The ETH staking ratio has increased to nearly 30%, up from 24% in January 2024.
ETH ETFs have also seen a surge in capital inflows. Since the beginning of the year, the total capital inflow into ETH ETFs has reached $4.8 billion, while Bitcoin ETFs have seen $19 billion.
However, the momentum is shifting. Just last week, the ETH ETF attracted $2.2 billion, nearly on par with Bitcoin's $2.4 billion.
During a trading day, the fund inflows for ETH ETF exceeded Bitcoin for the first time, amounting to $602 million and $523 million respectively.
BlackRock ) NYSE:BLK ( recently applied to modify its ETHA ETF to include staking rewards, which, if approved, could provide approximately 3% returns.
Institutional accumulation has exceeded the scope of ETFs. The Ethereum treasury company, emulating MicroStrategy's model for Bitcoin adoption, acquired approximately 430,000 ETH in July, accounting for about 0.6% of the total ETH supply.
These companies plan to deploy their ETH holdings into staking contracts and decentralized finance applications to generate returns.
Since the implementation of EIP-1559 in 2021, Ethereum's supply has remained stable, as this mechanism introduced the burning of a portion of transaction fees.
Over the past four years, the supply of ETH has grown at a compound annual growth rate of only 0.8%, increasing deflationary pressure while supporting price appreciation as demand rises.
Institutional interest, expanded ETF products, and a stable economic model based on trading-driven yields continue to solidify Ethereum's role in the evolving digital asset space.

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