Ethereum Surges Past Bitcoin in July as Staking Mechanism Boosts Demand
Ethereum has outperformed Bitcoin in July 2026, gaining around 22% while Bitcoin has only gained 9%. This divergence is attributed to several factors. Firstly, Ethereum's exchange reserves have been at an all-time low of 14.5 million ETH, with a significant portion of the supply locked into staking contracts and private wallets.
This reduced sellable supply has contributed to the price increase, as the available float for buying has shrunk. In contrast, Bitcoin has no native staking mechanism, making it less affected by this factor.
The launch of a yield-bearing BlackRock product has also been a significant driver of demand for Ethereum. This product allows institutional investors to earn a 3% staking yield, making the ETF wrapper more competitive with holding ETH directly.