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Ether (ETH) has just ended July with its strongest monthly performance since 2022, rising 56% on the back of consistent ETF inflows and rising institutional interest.
Ethereum, the second-largest cryptocurrency by market cap, recorded a dramatic 56% price surge in July—its biggest monthly gain in three years. This jump has drawn comparisons to early-stage tech stocks from the 1990s, thanks to growing adoption and massive capital inflows from institutional investors.
ETH Price Surges Past $3,800
On July 1, ETH was priced at $2,468. By the end of the month, it had climbed to $3,862, according to data from CoinGecko. This marks only the second time since July 2022 that Ether has posted a 50%-plus monthly return. In July 2022, ETH had also risen by around 56.62%.
This rally has caught the attention of analysts, with Bloomberg’s Senior ETF Analyst Eric Balchunas noting the similarities between ETH and tech stocks from the 1990s—fast-growing assets gaining momentum from increased public and institutional interest.
In a post on X (formerly Twitter), Balchunas wrote, “Ether is starting to look like a ‘90s tech stock as ETFs catch fire,” referring to the rapid rise of tech stocks in the early dot-com era. He contrasted Ethereum’s momentum with Bitcoin’s, noting that while Bitcoin is often described as “digital gold,” Ethereum is more closely aligned with innovation and network expansion.
Ether ETF Inflows Hit Record Levels
A significant driver of this rally has been the consistent flow of capital into spot Ether ETFs. These funds have now recorded 19 consecutive days of net inflows, tying their all-time record. From July 3 to July 30, total net inflows into ETH ETFs surpassed $5.37 billion.
The highest single-day inflow occurred on July 16, with $727 million pouring into ETH-focused ETFs.
BlackRock’s iShares Ethereum ETF has also made headlines, becoming the third-fastest ETF to reach $10 billion in assets under management. The fund achieved this milestone in just 251 days, underscoring the rising demand for institutional Ethereum exposure.
Interestingly, for six consecutive days in July, Ether ETFs attracted more net inflows than Bitcoin ETFs—a rare occurrence given Bitcoin’s usual dominance in the institutional space.
Mixed Sentiment Over Ethereum Network Activity
While ETH’s price action is undeniably strong, not everyone is convinced about the health of the Ethereum network itself. According to 10x Research CEO Markus Thielen, Ethereum’s core revenue has seen only modest growth, despite the price rally.
Thielen told Cointelegraph that “actual revenue being generated on the Ethereum network is very low,” with revenues rising just 3% and activity increasing by only 5% over the past month. This is in contrast to the price surge, which appears to be mostly driven by demand from Asian markets, based on trading data.
He pointed to the stark difference between today and Ethereum’s peak in November 2021. At that time, Ethereum generated $1.5 billion in monthly revenue, with a market cap of $300 billion. That scenario translated to a 6% annual yield—an attractive figure for institutional investors.
Now, despite Ethereum’s market cap reaching $466 billion, its annualized revenue stands at just $764 million, according to Token Terminal. This suggests a lower yield and questions about the network’s current economic productivity.
Ethereum Still Attractive to Institutions
Despite concerns over network revenue, the broader outlook for Ethereum remains positive. Institutional buying, particularly through ETFs, has become a major force in ETH’s market performance. Companies like Ether Machine and SharpLink recently invested over $100 million in ETH, adding to the bullish sentiment among large investors.
As more financial institutions continue to allocate capital into ETH via regulated investment vehicles, the market could see continued momentum—even if on-chain metrics remain relatively flat.
The comparison to 1990s tech stocks also points to a long-term narrative: Ethereum is being viewed not just as a cryptocurrency, but as the infrastructure for a future decentralized internet. That framing could help ETH maintain investor interest even during periods of weaker network activity.
