Ethereum (ETHUSD) is tearing higher in 2025, outperforming Bitcoin (BTCUSD) with its nearly 60% rise over the past six months.
Generally, Ethereum is seen as the only altcoin, or alternative cryptocurrency, with true “staying power,” as countless other projects are based on the Ethereum blockchain. These projects mint their own tokens on the Ethereum blockchain following certain standards, like ERC-20 for new cryptocurrencies and ERC-721 for non-fungible tokens (NFTs). In exchange for granting use of its network, people pay “gas fees” in ETH that go back to the blockchain.
In recent years, though, Ethereum has had to battle it out with Bitcoin as BTC has become more accessible to the mainstream through spot exchange-traded funds (ETFs).
Things are changing, and investors are reaping the rewards, as evidenced by the YTD win.
Ethereum now has its own spot ETFs, so both Bitcoin and Ethereum are seeing significant inflows. And JPMorgan believes Ethereum could eventually come out on top.
If you are a crypto veteran, you may remember the Terra Luna controversy. The Luna algorithmic stablecoin depegged from the U.S. dollar, and the entire project collapsed quickly. Trust in stablecoin projects was at an all-time low in the summer of 2022.
In 2025, the environment is completely different due to governments and institutions legitimizing stablecoins, and cryptocurrencies at large. President Donald Trump, in particular, has spearheaded this, as he and First Lady Melania Trump both have their own cryptos. The Trump family’s World Liberty Financial launched its own stablecoin called USD1. Even Visa (V) and Mastercard (MA) have been spooked into partnering up with crypto-related companies as an increasing number of merchants are accepting stablecoins.
You may wonder how ETH benefits if it is not a stablecoin.
Ethereum is a major beneficiary of this stablecoin boom as most stablecoins are also issued as ERC-20 tokens on the Ethereum blockchain. This is precisely why JPMorgan is bullish here.
Approximately $138 billion worth of stablecoins are on the Ethereum blockchain, which is a 51% share of the stablecoin market. U.K. bank Standard Chartered sees the stablecoin market at $750 billion by the end of 2026.
