Why Ethereum Has Soared Over the Past 7 Days: Bernstein
Ethereum's recent surge to just below $2,600 represents a 42% increase over the past week, driven by heightened interest in digital assets beyond mere stores of value. Analysts at Bernstein attribute this rise to the growing adoption of stablecoins for cross-border payments and potential offerings of tokenized equities by brokerages like Robinhood on Ethereum's blockchain. The positive sentiment towards institutional adoption of blockchain technology is reshaping investor perceptions of Ethereum. The recent Pectra upgrade has also improved Ethereum's speed and efficiency. A favorable U.S. political climate is fostering interest in digital assets, with lawmakers discussing regulations for stablecoins. Stripe has launched stablecoin-based accounts, and Meta is reviving its stablecoin project. Ethereum commands a 51% share of the minted stablecoin supply, with Layer 2 networks using ETH for gas fees, enhancing demand. Analysts predict that the rally in ETH and other non-Bitcoin assets will boost trading volumes for crypto exchanges and broker-dealers, benefiting companies like Coinbase and Robinhood.
