- Ethereum saw a sharp price increase in the past week, significantly outpacing Bitcoin and Solana.
- Analysts from Bernstein attribute Ethereum’s rise to greater adoption of blockchain technology and stablecoin payments by institutions and retail investors.
- Stablecoins and Layer-2 blockchain networks are driving new demand for Ethereum, even as the asset remains below its all-time high.
ethereum’s price has jumped over 40% in the past seven days, trading just below $2,600 as of Wednesday. This increase comes as investors show greater interest in the practical uses of digital assets, especially for payments and tokenized products, according to research analysts at Bernstein.
During the same period, Bitcoin climbed about 6%, while Solana gained 21%. Ethereum’s surge began after last Thursday’s successful Pectra upgrade, a move designed to improve the network’s speed and efficiency. The coin had been priced between $1,500 and $1,700 for most of 2025.
In a note, Bernstein analysts highlighted growing use of stablecoins—digital tokens linked to assets like the U.S. dollar—for cross-border transactions and business accounts. Stripe recently launched stablecoin-based accounts after its February purchase of the stablecoin infrastructure provider Bridge. Social media company Meta also restarted its stablecoin efforts, according to the note. “Stablecoins are bringing back the focus on underlying blockchain networks becoming platform proxies to gain exposure to the growth trend,” the report stated. Ethereum backs 51% of all stablecoins currently in circulation.
The analysts also pointed to the potential for brokers such as Robinhood to offer tokenized shares through blockchain technology. After purchasing crypto exchange WonderFi for $179 million, Robinhood could present equities on its own Layer-2 blockchain built on Ethereum. Layer-2 networks use the Ethereum blockchain for security and settlement, helping to boost demand for the ETH token. The note explained, "Layer 2 chains such as Base also pay gas fees in ETH to the underlying Ethereum layer 1 network, as they use it for security and settlement. This might become the template for asset managers and institutional users launching their own layer 2 chain on Ethereum."
The Bernstein report also linked recent gains in Ethereum and non-Bitcoin digital assets to higher trading volumes at crypto exchanges and brokerages. "After the tariff impacted April, we expect May to be a stronger month for retail crypto trading volumes. Both COIN and HOOD should be beneficiaries," they noted.
A more favorable U.S. political environment is also influencing the crypto sector, with lawmakers now considering a bill to regulate stablecoins. This trend, combined with increased adoption and innovation from major companies, is contributing to higher interest and demand for Ethereum and similar assets.
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