Ethereum Surges 20% in One Day, Leaving Bitcoin in Its Wake

Ethereum (ETH) experienced an explosive rally on August 20, surging nearly 20% in a single day to mark its largest single-day gain since May 9. This significant price increase far outperformed Bitcoin (BTC), which rose around 10% on the same day.

The drivers behind Ethereum's price surge originated in the United States, mainly encompassing three aspects: the US Treasury doubling its single bond buyback limit to $4 billion, releasing substantial liquidity; US President Trump meeting with executives from multiple crypto firms and revealing plans for large-scale Bitcoin accumulation; and the US SEC establishing registration exemption and safe harbor mechanisms through the Crypto Asset Regulations.

ETH's gains far outperformed BTC mainly because a massive amount of ETH is locked in L2 networks, liquid staking, and restaking protocols, leaving exchange spot inventory available for trading at historic lows. When massive buying orders flooded in, the extremely low spot order book depth directly amplified upward price slippage.

Data shows that the ETH balance in exchange wallets was only around 12 million tokens on August 20, far below last year's peak level of 17 million tokens.