CMC News

$ETH Rally Driven by Triple Catalyst Combination, Sygnum Reports

Digital asset bank Sygnum has identified three primary factors driving

$ETH's 140% surge since the Pectra upgrade: fundamental improvements, supply constraints, and institutional demand. The analysis contrasts with $BTC's 15% and $SOL's 42% gains over the same period.

The #Pectra upgrade's smooth execution added staking improvements and scaling enhancements, establishing technical foundations for price appreciation. Crypto-friendly regulation under the #Trump administration then catalyzed institutional capital inflows.

ETFs and Digital Asset Treasuries have collectively acquired 8.4% of the $ETH market capitalization. Spot #EthereumETFs accumulated $27.73 billion while DATs hold $16.02 billion, creating significant supply absorption from traditional markets.

The #SEC's clarification that staking services don't constitute securities offerings removed regulatory uncertainty in May 2025. This development triggered massive ETF inflows after months of relatively subdued institutional interest following the July 2024 launch.

Staking services have removed nearly 30% of $ETH supply from circulation, according to Coinbase research. Exchange reserves have fallen below cycle lows, creating potential supply shortage conditions as demand accelerates.

BuyUcoin CEO Shivam Thakral noted that #DeFi, real-world assets, and rollup activity are gaining traction beyond ETF-driven demand. These fundamental use cases provide sustainable demand sources independent of speculative trading.

Sygnum's analysis highlighted negative supply shock dynamics with declining exchange inventory data. The combination suggests $ETH is positioned for continued appreciation unless broader economic or regulatory disruptions occur.

Prediction market Myriad shows users are cautiously optimistic about $ETH prospects, with approximately two-thirds expecting prices above $5,000 this year.