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In 2025, the performance of Ethereum in the market was truly astonishing. From the low of $1385 in April, it surged to over $4700 in August, achieving a rise of over 240% in just four months. Not only did it set a new record since 2021, but it also surpassed the market capitalization of Bitcoin for the first time this year. Behind this remarkable upward trend is a perfect interplay of three driving forces: policy, technology, and capital.
The positive shift in the policy environment has become an important driver of this round of rise. In April, the United States removed the tax reporting requirements for DeFi platforms, and in May, it terminated strict banking regulatory policies. In July, the signing of the landmark "GENIUS Act" injected a boost into the market, significantly enhancing investor confidence.
At the same time, the technological innovations in the Ethereum ecosystem are also continuing to advance. The Pectra upgrade implemented in May, especially the EIP-7702 account abstraction scheme, has brought unprecedented convenience to users. This innovation allows ordinary users to enjoy advanced features such as batch trading and having others pay for Gas fees, greatly enhancing the network's practicality and activity.
However, the core driving force behind the continuous rise in Ethereum prices comes from the large-scale entry of institutional investors. Since May, a number of well-known companies have begun to include Ethereum in their financial reserves. This trend not only reflects the confidence of institutions in the long-term development prospects of Ethereum but also injects a large amount of liquidity into the market.
Behind this round of rise, it reflects the growing maturity of the cryptocurrency market and Ethereum's leading position in the blockchain field. With the clarity of the regulatory environment, continuous technological advancements, and the ongoing inflow of institutional funds, the future development of Ethereum is promising. However, investors still need to be cautious, closely monitor market trends, and have a rational view of this rising market.