Ethereum soars 60% in record comeback as new law fuels fresh excitement

Dubai: Ethereum (ETH) is staging a major comeback. After two years of underperformance, the world’s second-largest cryptocurrency has surged 60% in the past month, nearing $3,800 levels.

The rally is being driven by a perfect storm: renewed institutional interest, hopes of a spot ETH ETF, and most significantly, the passage of the GENIUS Act—the US’s first national crypto legislation.

The legislation—officially approved by both chambers of Congress last week—sets a clear regulatory framework for stablecoins, digital tokens pegged to reliable assets like the US dollar.

Ethereum plays a key role in issuing and supporting these tokens, making it one of the biggest beneficiaries of this bill. Backed by Donald Trump, the GENIUS Act marks a major milestone for the crypto sector that has long sought mainstream legitimacy.

According to digital asset manager CoinShares, Ethereum has seen inflows of over $295 million in 2024 alone—despite earlier slumps. Several publicly listed companies have recently added ETH to their balance sheets, while new ETH-based investment products—including ETFs—are gaining momentum.

Hopes are high that the US SEC will soon approve staking-enabled Ethereum ETFs, after clarifying that staking isn’t classified as a securities transaction.

Meanwhile, Solana (SOL) has crossed $100 million in ETF assets under management, riding the same institutional wave. Dogecoin (DOGE) is also in the spotlight, with its community preparing for a major upgrade through zero-knowledge proofs (zk-proofs)—a move aimed at enhancing speed and privacy.

The GENIUS Act gives stablecoins a structured regulatory home in the US financial system, which is seen as a win for Ethereum. Stablecoins like USDC and DAI run primarily on Ethereum’s blockchain, and the bill could encourage broader adoption across industries now that legal clarity is on the table. Analysts say Ethereum is now better positioned to become a foundational layer for a tokenized global economy.

However, ETH still faces challenges—scalability being the biggest. Despite the optimism, rivals like Bitcoin and Solana continue to outperform it in terms of growth and efficiency. Ethereum is up just 60% over two years, compared to Bitcoin’s nearly 300% gain. And year-to-date, ETH remains about 8% in the red.

Supporters believe the GENIUS Act and the rise of asset tokenization will cement Ethereum’s place in the future of money. As more businesses adopt smart contracts and decentralized finance (DeFi) tools, Ethereum’s influence is likely to grow. Yet critics point to persistent congestion and high gas fees as barriers to mass adoption.

Still, investor sentiment is clearly shifting. With the US regulatory tide turning, institutions getting onboard, and the possibility of a $10,000 Christmas rally being floated by some market watchers—Ethereum may be ready to reclaim center stage in the crypto race.