Why Ethereum Has Soared Over the Past 7 Days: Bernstein

Ethereum has surged 65% over the past month, reaching $2,750 as institutional interest converges with fundamental network upgrades. Bernstein analysts identify three tectonic shifts driving ETH’s resurgence after months of lagging Bitcoin’s performance.

The rally follows a prolonged period where Ethereum struggled to differentiate itself from faster Layer 1 chains and Bitcoin’s ETF-driven momentum. Bernstein’s Gautam Chhugani notes ETH is now reclaiming its role as crypto’s foundational settlement layer through real-world asset tokenization and stablecoin innovation.

This reversal comes as traditional finance giants and tech leaders make billion-dollar bets on Ethereum-based infrastructure. The network now hosts 51% of all stablecoins and 68% of tokenized real-world assets according to RWA.xyz data.

Ethereum’s Resurgence Driven by Three Key Factors

Bernstein’s research highlights a trifecta of catalysts propelling ETH’s rebound. First, stablecoin transaction volume has grown 40% quarterly, with Ethereum processing $4.3 trillion in stablecoin transfers annually. Payment giants like Stripe and Meta are now building on this infrastructure.

Second, real-world asset tokenization has surpassed $22 billion in value, dominated by Ethereum-based deployments from BlackRock and Franklin Templeton. These institutional flows contrast sharply with retail-focused meme coin activity on competing chains.

Third, Layer 2 networks like Arbitrum and Base now handle 78% of Ethereum transactions, reducing gas fees by 92% compared to 2023 peaks. This scalability breakthrough enables simultaneous growth in both institutional and retail use cases.

BlackRock and Franklin Templeton Lead Tokenization Charge

The asset management titans have tokenized $8.2 billion in treasury funds and money market instruments on Ethereum since Q4 2024. BlackRock’s BUIDL fund alone attracted $5.6 billion in inflows, becoming the largest tokenized treasury product.

Franklin Templeton’s BENJI token now settles $300 million daily in interbank transactions through Ethereum’s network. Bernstein analysts predict tokenized assets could inject $400 billion annually into Ethereum’s ecosystem by 2026.

Key tokenization milestones achieved in 2025:

• $22 billion total value locked (RWA.xyz)
• 17% of US Treasury liquidity now on-chain
• 84% institutional adoption rate among top 100 asset managers

Stripe and Meta Bet Big on Stablecoin Infrastructure

Stripe’s $1.1 billion acquisition of stablecoin platform Bridge signals corporate America’s push into blockchain payments. The deal follows Meta’s partnership with Circle to integrate USDC transfers across WhatsApp and Instagram.

These developments position Ethereum as the backbone for Web3’s financial infrastructure. Network data shows stablecoin supply on Ethereum grew 28% in Q1 2025, reversing two years of declines.

Bernstein’s report emphasizes that ETH’s $2,750 price reflects growing recognition of its dual role as both a speculative asset and critical financial plumbing. VanEck’s analysis suggests this could be the precursor to a $6,000 ETH target in late 2025.

Install Coin Push mobile app to get profitable crypto alerts. Coin Push sends timely notifications – so you don’t miss any major market movements.

Market Impact and Altcoin Rally

Ethereum’s resurgence has ignited an altcoin rally, with Lido DAO (LDO) and Arbitrum (ARB) gaining 112% and 89% respectively since May 1. Crypto investment products saw $35 billion inflows last quarter, the highest since 2021’s bull market.

Analysts warn of potential volatility as the SEC reviews Ethereum ETF applications, but Bernstein maintains that ETH’s fundamental transformation makes it “the most compelling infrastructure play in digital assets.” The network’s pivot from speculative NFTs to institutional-grade finance appears complete.