Ether posted a 56% price surge in July, driven primarily by unprecedented institutional demand and record-breaking inflows into exchange-traded funds (ETFs). This marks one of the asset’s strongest monthly performances despite tepid growth in underlying network activity.
The rally was largely propelled by 19 consecutive days of ETF inflows, totaling over $5.37 billion during the month. BlackRock’s iShares Ethereum ETF notably became the third-fastest ETF ever to reach $10 billion in assets under management, achieving the milestone within just 251 days of trading.
Despite the substantial price appreciation, Ethereum’s network fundamentals showed only marginal improvement. Revenue increased by 3% while network activity rose just 5% over the past six months. Annual revenue currently stands at approximately $764 million—less than half of its November 2021 peak levels.
Institutional accumulation and structured product demand appear to be the primary drivers of the price action, raising questions about sustainability without corresponding ecosystem growth. The divergence between market enthusiasm and network metrics highlights evolving investment dynamics in the digital asset space.