{"id":23990,"date":"2025-05-14T16:27:35","date_gmt":"2025-05-14T13:27:35","guid":{"rendered":"https:\/\/forklog.com\/en\/bernstein-identifies-three-catalysts-for-ethereums-rally\/"},"modified":"2025-05-14T16:27:35","modified_gmt":"2025-05-14T13:27:35","slug":"bernstein-identifies-three-catalysts-for-ethereums-rally","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/bernstein-identifies-three-catalysts-for-ethereums-rally\/","title":{"rendered":"Bernstein Identifies Three Catalysts for Ethereum&#8217;s Rally"},"content":{"rendered":"<p>Analysts at Bernstein have pinpointed three primary factors that have driven Ethereum&#8217;s approximately 60% surge over the past month, according to <a href=\"https:\/\/www.theblock.co\/post\/354248\/what-is-driving-ethereums-near-100-per-cent-price-surge\">The Block<\/a>.<\/p>\n<p>The brokerage firm&#8217;s experts noted that the ETH\/BTC pair ratio has dropped by 45% over the past year, as Bitcoin has dominated as a store of value and a corporate reserve asset. Retail flows have shifted to faster and cheaper L1 networks like Solana.<\/p>\n<p>Ethereum has been &#8220;stuck somewhere in the middle&#8221; as neither the best store of value nor the most convenient platform for speculation, according to analysts led by Gautam Chhugani.<\/p>\n<p>In their assessment, the situation has begun to change, influenced by three main factors:<\/p>\n<ul class=\"wp-block-list\">\n<li>the boom in stablecoins and tokenization;<\/li>\n<li>the institutionalization of L2 solutions;<\/li>\n<li>the closing of short positions in Ethereum.<\/li>\n<\/ul>\n<p>The blockchain of the second-largest cryptocurrency by market capitalization accounts for about 51% of the total volume of &#8220;stablecoins.&#8221; Stripe&#8217;s purchase of the stablecoin platform Bridge <a href=\"https:\/\/forklog.com\/en\/news\/stripe-acquires-bridge-for-1-1-billion\">for $1.1 billion<\/a> and Meta&#8217;s announcement of <a href=\"https:\/\/forklog.com\/en\/news\/meta-explores-stablecoin-integration\">potential integration<\/a> of assets into its platforms have helped refocus attention on foundational networks.<\/p>\n<p>According to FT experts, global banks and fintech companies have already entered <a href=\"https:\/\/forklog.com\/en\/news\/global-banks-and-fintech-firms-enter-the-stablecoin-race\">the &#8220;stablecoin race&#8221;<\/a>. The market leader&#8217;s capitalization, USDT from Tether, has <a href=\"https:\/\/forklog.com\/en\/news\/tethers-market-capitalisation-surpasses-150-billion\">exceeded $150 billion<\/a>, and the US Treasury forecasts the segment&#8217;s capitalization to reach <a href=\"https:\/\/forklog.com\/en\/news\/us-treasury-predicts-stablecoin-market-to-reach-2-trillion\">$2 trillion by 2028<\/a>.<\/p>\n<p>Ethereum is seen as the main beneficiary of this growth as the primary proxy platform for &#8220;stablecoins,&#8221; Bernstein analysts believe.<\/p>\n<p>The blockchain also dominates the RWA sector, with the volume of tokenized real-world assets already estimated at $22 billion. Deloitte has suggested a surge in this figure <a href=\"https:\/\/forklog.com\/en\/news\/deloitte-predicts-4-trillion-tokenization-of-real-estate\">to $4 trillion<\/a> over the next 10 years.<\/p>\n<p>Bernstein specialists also noted that Ethereum&#8217;s L2 networks, such as Base, are playing an increasingly significant role as crypto infrastructure for institutions. <a href=\"https:\/\/forklog.com\/en\/news\/robinhood-to-acquire-crypto-platform-wonderfi-for-179-million\">Robinhood&#8217;s acquisition<\/a> of the WonderFi platform, which manages its own second-layer protocol, will enable the online broker to offer trading of tokenized stocks on its own chain.<\/p>\n<p>Since L2 solutions use ETH as a gas token and means of settlement, this helps stimulate demand for the cryptocurrency, the analysts added.<\/p>\n<p>The third factor in Ethereum&#8217;s recent rally was described as partly tactical. Over the past year to year and a half, institutional players have actively used the coin in delta-neutral hedging strategies\u2014maintaining longs in BTC and SOL and <a href=\"https:\/\/forklog.com\/en\/news\/experts-attribute-ethereums-weakness-to-hedge-funds-short-positions\">short positions in ETH<\/a>. As narratives shifted, it became more challenging for investors to label the asset as a &#8220;laggard,&#8221; Bernstein specialists noted.<\/p>\n<p>Earlier, experts from crypto bank Sygnum <a href=\"https:\/\/forklog.com\/en\/news\/deloitte-predicts-4-trillion-tokenization-of-real-estate\">found no<\/a> convincing evidence that Solana will surpass Ethereum as the preferred blockchain for institutions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Analysts at Bernstein have pinpointed three primary factors that have driven Ethereum&#8217;s approximately 60% surge over the past month, according to The Block. The brokerage firm&#8217;s experts noted that the ETH\/BTC pair ratio has dropped by 45% over the past year, as Bitcoin has dominated as a store of value and a corporate reserve asset. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":23989,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1643,46,1138],"class_list":["post-23990","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bernstein","tag-ethereum","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"19","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/23990","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=23990"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/23990\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/23989"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=23990"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=23990"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=23990"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}