The present momentum in blockchain markets represents a elementary shift in monetary infrastructure reasonably than one other speculative crypto wave, in response to Bernstein’s newest memo.
The agency characterizes the continued surge, pushed by stablecoins, tokenized property, and Ethereum’s ETH/USD rising dominance, as a “blockchain monetary companies cycle,” signaling structural transformation as a substitute of cyclical hype.
What Occurred: In a observe despatched to Benzinga on Monday, the analysts described how current developments, significantly the bipartisan passage of the U.S. GENIUS Act and the general public itemizing of Circle CRCL, have solidified stablecoins as regulated digital money.
The GENIUS Act, signed into legislation by President Donald Trump, formally legalizes using stablecoins in digital funds, marking a crucial turning level in U.S. monetary regulation.
Bernstein emphasizes that this regulatory readability helps shift blockchain expertise from speculative use instances to core monetary infrastructure.
Ethereum has emerged because the principal beneficiary of this transformation.
With over 60% of USDC USDC/USD, the main dollar-backed stablecoin issued on Ethereum, and practically a 3rd of the $25 billion in tokenized property working on its community, Ethereum has reasserted its place because the main blockchain for real-world monetary functions.
BlackRock’s BLK tokenized BUIDL fund, now valued at roughly $2.8 billion, additionally runs on Ethereum.
“Ethereum is having its second,” the analysts wrote, noting that ETH has risen roughly 45% in simply two weeks.
That surge, they argue, is underpinned not by hypothesis however by elementary demand for the blockchain’s utility as a monetary settlement layer.
As extra capital flows into Ethereum to deploy stablecoins, function DeFi functions, and facilitate tokenized asset transactions, community charges enhance fueling ETH staking yields and reinforcing long-term holding conduct.
Presently, about 30% of ETH provide is staked, up from 24% in January 2024, indicating rising confidence within the protocol’s yield-bearing properties.
Ethereum staking yields, presently round 2.9% in ETH phrases, are fueled by transaction charges and validator emissions.
In keeping with Bernstein, this creates a “optimistic suggestions loop”: extra transactions drive greater charges, which enhance staking yields, thereby rising the motivation to amass and stake ETH.
This yield dynamic can also be being mirrored in institutional funding flows. ETH spot ETFs, as soon as lagging behind their Bitcoin counterparts, at the moment are quickly catching up.
Bernstein reported that Ethereum ETFs introduced in $2.2 billion final week, practically matching the $2.4 billion in Bitcoin ETF inflows.
On sooner or later alone, ETH ETF flows surpassed Bitcoin’s for the primary time. BlackRock has additionally filed to amend its ETHA ETF to incorporate staking yields, probably providing round 3% in returns, remodeling ETH from a capital positive aspects asset into one with revenue potential.
Additionally Learn: Ethereum Roars To $3,800: What’s Driving The Surge?
Why It Issues: The agency additionally highlighted the emergence of “Ethereum treasury corporations, “corporations that maintain ETH on their stability sheets to earn yield via staking or decentralized finance protocols, much like how Technique MSTR pioneered the Bitcoin treasury mannequin.
In July 2025 alone, corporations like SharpLink Gaming SBET, BitMine Immersion Techs BMNR, and Bit Digital BTBT have collectively collected over 430,000 ETH, amounting to roughly 0.6% of the whole provide.
In the meantime, Ethereum’s provide development has been tightly managed as a result of EIP-1559 improve, which completely removes a portion of transaction charges from circulation.
The result’s a near-flat annual provide enhance of simply 0.8% over the previous 4 years.
With over 1 / 4 of ETH locked in staking contracts and rising institutional shopping for stress, Bernstein sees a structurally deflationary setup supporting long-term value appreciation.
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