Ethereum Quietly Surpasses Bitcoin in July Performance
Ethereum's July performance was a significant departure from its earlier market struggles. After spending most of 2026 as the biggest disappointment, Ethereum rallied by roughly 22% in July, outpacing Bitcoin's 9% gain. The reasons behind this disparity are structural rather than sentimental.
The supply dynamics played a crucial role in Ethereum's surge. Its exchange reserves have been sitting near all-time lows, while its staking ratio reached an all-time high, locking roughly a third of total supply into validation. This led to a thinner market available for buying, making the demand move prices further than it would have otherwise.
Another factor contributing to Ethereum's outperformance was the launch of a yield-bearing BlackRock product, which drew in $100 million on its first day of trading. This staked product offers a 3% staking yield, removing the structural disadvantage of holding ETH directly and making it competitive for institutional allocators.