Ethereum Posts Best Monthly Performance in Three Years with 56% July Surge

Ether Reaches $3,862 After Massive Monthly Rally

Ethereum has delivered its strongest monthly performance in three years, posting an impressive 56% gain throughout July 2025. The cryptocurrency reached $3,862 by month-end, marking a significant jump from its July 1 opening price of $2,468.

This remarkable surge represents Ethereum's first monthly return exceeding 50% since July 2022, when ETH gained 56.62%. The current rally has positioned Ethereum as one of the top-performing major cryptocurrencies for the month.

Bloomberg Analyst Compares Ethereum to 1990s Tech Stocks

Eric Balchunas, Bloomberg's Senior ETF Analyst, drew parallels between Ethereum's current trajectory and technology stocks from the 1990s boom. He attributed the price surge to substantial net inflows across spot Ethereum exchange-traded funds.

The analyst highlighted Ethereum's accelerating adoption and network growth, distinguishing it from Bitcoin's "digital gold" narrative. This comparison suggests Ethereum is positioning itself as a growth-oriented technology platform rather than solely a store of value.

Ethereum ETFs Experience Historic 19-Day Inflow Streak

Spot Ethereum ETFs have maintained an unprecedented 19-day consecutive net inflow streak during July, matching their longest streak in history. From July 3 to July 30, these funds attracted more than $5.37 billion in new investments.

The peak inflow day occurred on July 16, when all Ethereum ETF funds combined recorded nearly $727 million in net inflows. This sustained investor interest demonstrates growing institutional confidence in Ethereum's long-term prospects.

BlackRock's Ethereum ETF Achieves Major Milestone

BlackRock's iShares Ethereum ETF reached a significant achievement by becoming the third-fastest ETF to surpass $10 billion in assets under management. The fund accomplished this milestone in just 251 days, highlighting the rapid institutional adoption of Ethereum investment products.

For six consecutive days in July, Ethereum ETF inflows exceeded those of Bitcoin ETFs, representing a rare shift in investor preference toward the second-largest cryptocurrency.

Network Activity Concerns Despite Price Rally

While Ethereum's price performance has impressed investors, some analysts express concerns about underlying network activity. According to 10x Research CEO Markus Thielen, Ethereum's actual revenue generation remains relatively low compared to its market valuation.

Network activity increased only 5% in the past month, while revenues grew by just 3%. Additionally, 90% of the recent price action has originated from Asian trading sessions, indicating regional concentration in trading activity.

Revenue Generation Challenges for Ethereum Network

Current data reveals a significant gap between Ethereum's market capitalization and revenue generation. With a market cap of $466 billion, Ethereum generates approximately $764 million in annual revenue, according to Token Terminal.

This contrasts sharply with November 2021, when Ethereum produced $1.5 billion in monthly revenue on a $300 billion market cap, translating to an attractive 6% annual yield for institutional investors. The current revenue-to-market-cap ratio suggests potential challenges for fundamental valuation metrics.

Market Outlook and Institutional Interest

Despite network activity concerns, institutional interest in Ethereum remains strong, as evidenced by continued ETF inflows. The sustained investment momentum suggests confidence in Ethereum's long-term technological development and adoption prospects.

The comparison to 1990s technology stocks implies potential for continued growth, though investors should monitor network utilization metrics alongside price performance. Ethereum's ability to increase revenue generation relative to its market value will likely influence future institutional investment decisions.

Key Takeaways for Ethereum Investors

Ethereum's 56% July gain marks its best monthly performance since 2022, driven primarily by ETF inflows totaling over $5.37 billion. While price momentum remains strong, network revenue generation has not kept pace with market cap growth.

The sustained 19-day ETF inflow streak and institutional milestones indicate growing mainstream adoption. However, investors should consider both price performance and underlying network fundamentals when evaluating Ethereum's investment potential.

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