Ethereum (ETH) has surged by 20%, fueled by supportive U.S. policies, rising demand for decentralized finance, and substantial institutional investments, marking a significant shift in its market position.

With over 54% of stablecoins issued on Ethereum, the network is transforming into a vital financial infrastructure, comparable to traditional assets like Treasuries and gold.

U.S. legislation, including the CLARITY and GENIUS Acts, is seen as a catalyst for Ethereum’s growth, especially in the realm of yield-bearing stablecoins.

While the market remains bullish, analysts warn that the gains could be volatile and may not be sustainable over the long term.

Institutional confidence is further evidenced by significant treasury allocations, with firms like SharpLink Gaming adding $225 million in ETH and Bitmine Immersion Technologies reserving over $500 million in Ethereum.

This rise coincides with a decline in Bitcoin's dominance, indicating a possible shift toward altcoins, with Ethereum leading due to record levels in daily active addresses and transaction volumes.

Major institutions such as BlackRock and Fidelity are increasingly viewing Ethereum as a reserve asset, using it for collateralization, settlement, and staking, which boosts its institutional credibility.