Crypto Soars to New Highs: Ethereum Leads the Charge as Bitcoin Closes In on All-Time Peak

The cryptocurrency market is experiencing a powerful rally, with both Bitcoin and Ethereum trading near their all-time highs, fueled by a renewed surge in investor demand. While Bitcoin hovers above the $120,000 mark, Ethereum is showing exceptional performance, now just 3% away from its record high set during the 2021 bull run.

Ethereum Takes the Lead

This new momentum is being driven by Ethereum, the world’s second-largest cryptocurrency, which has helped push the total market capitalization to a record $4.2 trillion, according to data from "CoinGecko". This significant surge is attributed to two key factors: record-breaking inflows into direct Ethereum investment funds, and the emergence of specialized "staking entities". These publicly traded companies, adopting a collective investment model similar to what Michael Saylor used for Bitcoin, have so far acquired approximately $17 billion worth of Ethereum, based on data from "StrategicEthReserve.xyz".

In a notable development, shares of "180 Life Sciences," which operates as "ETHZilla", saw a massive jump of over 50% in early trading on Wednesday. The company, which pivoted from biotechnology to primarily an Ethereum staking entity, is backed by billionaire Peter Thiel. This impressive rally came after the company announced its ownership of 82,186 units of Ethereum, which had already caused its stock to soar by more than 200% on Tuesday alone.

Ethereum ETFs Outperform Bitcoin

The numbers confirm that Ethereum is clearly outperforming Bitcoin in attracting new capital. In August, U.S. spot Ethereum ETFs attracted net inflows exceeding $1.7 billion, while Bitcoin funds recorded outflows of $436 million, according to data compiled by "Bloomberg". Furthermore, for the first time since their launch, the nine Ethereum ETFs saw a higher daily trading volume than the twelve Bitcoin ETFs. The open interest in Ethereum futures across exchanges also hit a record high of $66 billion.

Strong Projections for Ethereum's Future

In a report released on Wednesday, "Standard Chartered" raised its year-end 2025 price target for Ethereum to $7,500, up from its previous estimate of $4,000. Geoff Kendrick, the bank's global head of crypto assets, attributed this optimism to several factors, with the most significant being the passage of the U.S. "GENIUS" Act in July. This legislation paves the way for widespread adoption of stablecoins.

Kendrick explained that the act will indirectly boost activity on the Ethereum network, as increased stablecoin liquidity (which accounts for 40% of total blockchain fees, with Ethereum hosting over 50% of them) will fuel growth in the decentralized finance (DeFi) sector—a space dominated by Ethereum.