Ethereum has recently been broken into fresh all-time highlights, and the debate about what this rally feeds is central. To get a clearer picture, we sat down with Lennaert Snyder, Crypto analyst and official partner at Bybit, to understand what is really happening behind the increase in Ethereum and how to look at ETH versus Bitcoin.
His take offers a window on how much of the Rally of Ethereum is powered by institutional flows and how much is supported by activity to the chain itself. Spot ETFs have already reached the headlines and pulled $ 2.9 billion in one week, a figure that even surpassed the influx of Bitcoin ETF.
“On-chain statistics also show a growing question: high bridge inflow and rapidly increasing stablecoin offer shows a strong activity in Defi and the Stablecoin ecosystem,” he said in an interview with Coinpedperia.
Stablecoin Supply is expanding, Defi protocols bloom and the inflow of Brugbrug remains strong. Snyder estimates that about 60 to 70 percent of Ethereum’s price movement can be attributed to ETF inflow, while 30 to 40 percent comes from organic use such as bets and Defi -participation.
Institutional appetite for Ethereum
The newest market behavior reveals a growing institutional preference for Ethereum. Snyder opened the unique advantage of Ethereum: multiple income flows. Apart from the fact that it is an asset to hold, ETH offers smart contract functionality, rewards and access to a huge Defi Ecosystem. These functions appeal to funds that are looking for returns beyond the Value Real store.
This institutional turn is clear in the data. ETH ETFs are currently performing better than their bitcoin counterparts, and Ethereum-oriented treasuries such as Bitmine Collect ETH active.
However, he also said: “Having said that, I think Bitcoin is still the standard choice for more conservative institutions that are looking for” digital gold “with slightly lower volatility.”
Bitcoin will continue to serve as the anchor, while Ethereum offers a more dynamic growth story. Institutions can start with BTC for stability, but increasingly diversify in ETH for yield and innovation.
