Ethereum Leaves Bitcoin Behind as ETF Inflows and Staking Drive Price Rally

Ethereum's price rally surpassed Bitcoin's gains on July 27, with ETH increasing by around 4%, roughly three times the gain of BTC.

The Ethereum price surge was driven by sustained ETF inflows, staking supply limits, and the AiFi narrative. According to SoSoValue data, Ethereum ETFs have experienced net inflows since July 11, marking eight consecutive weeks without outflows.

This indicates that investors were already buying ETH before the recent move. Additionally, staking dynamics played a significant role, with more investors entering Ethereum staking than leaving, as reported by CryptoTimes on July 27. Validators locking up ETH reduces the supply available for selling in the market, limiting sell-side movement.

The AiFi narrative also contributed to the rally, with Coinbase CEO Brian Armstrong publishing a post on X about Agentic Finance (AiFi), which combines AI agents with crypto infrastructure. Ethereum's role in supporting Base, USDC, and Coinbase's x402 payment protocol makes it a settlement layer for an AI-based financial system, further strengthening institutional demand.