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Technology

Ethereum Outpaces Bitcoin as Institutions Drive New Crypto Shift

Last updated: November 21, 2025 8:53 pm
Alisha Akhtar
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Ethereum’s rising momentum is reshaping the global crypto landscape, with analysts noting that the digital asset is steadily stepping out of Bitcoin’s long-held shadow. Market analysis from Quoc Dat Tong, Financial Markets Strategist at Exness, highlights Ethereum’s expanding influence as institutional investment, smart-contract utility, and DeFi growth continue to push the asset toward a stronger market position.

 

Ethereum’s daily transaction volume exceeded $17.2 billion in Q1 2025, outperforming Bitcoin for the fourth consecutive quarter. The cryptocurrency crossed the $4,000 mark in August 2025, a historic milestone supported by expectations of a Federal Reserve rate cut. Institutional confidence surged following the launch of eight spot ETH ETFs in 2024, marking a turning point in Ethereum’s market credibility.

 

Experts attribute Ethereum’s growing appeal to its smart-contract ecosystem, flexibility for developers, and role in powering DeFi, NFTs, and thousands of digital tokens. The shift to a proof-of-stake model in 2022 and fee-burning under EIP-1559 have strengthened ETH’s fundamentals, transforming it into a deflationary, yield-generating asset often compared to “digital bonds” or “digital oil.”

 

Analysts like Ryan Sean Adams project ETH could climb to $17,000, citing its store-of-value characteristics and rising staking rewards. Major corporations now hold over 4.1 million ETH, reinforcing Ethereum’s emerging status as a key digital commodity.

 

Whether Ethereum will challenge Bitcoin’s dominance remains uncertain, but market trends indicate its expanding utility, liquidity, and institutional demand are driving a new chapter in the crypto market’s evolution.

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