Ethereum is taking the lead.
The second-largest crypto pulled in $380 million in exchange-traded fund inflows on Monday and Tuesday, outpacing Bitcoin’s $352 million, according to DefiLlama data, suggesting that institutions are accumulating amid fresh optimism.
Ethereum is at the beginning of a “supercycle” as it “catches fire” on the way to $4,700, Shawn Young, chief analyst at MEXC Research, told DL News.
Investor confidence highlights the network’s “continued leadership in stablecoin issuance and tokenised infrastructure,” Young said.
The optimism comes as the Ethereum Foundation is doubling down on privacy with a new 47-member “Privacy Cluster” team of cryptographers, engineers, and researchers focused on embedding privacy into the blockchain’s core infrastructure.
Privacy pivot
“Privacy is the freedom to choose what you share, when you share it, and who you share it with,” the foundation said in a major announcement earlier in October. “It’s essential for dignity, security, and digital trust.”
Ethereum co-founder Vitalik Buterin has publicly endorsed privacy tech, arguing that privacy should be the default option for blockchain users.
And investors are taking notice.
Railgun, a protocol that hides wallet balances and transactions, has seen record activity this year processing $1.6 billion in shielded transfers so far with two months left to go in 2025. The protocol’s $4 billion milestone highlights the surging demand for privacy tools.
“Privacy is in every financial system except for DeFi,” Railgun contributor Bill Liang told DL News. “Even something as simple as transferring value between accounts on a public ledger forces you to reveal your hand when you may not be ready to do so.”
Supportive macro backdrop
As fundamentals strengthen, macro tailwinds are amplifying the trend.
Thomas Perfumo, global economist at crypto exchange Kraken, told DL News that “the outlook remains broadly supportive as the Federal Reserve signals a renewed rate-cutting cycle.”
“While the market is stabilising after the October 10 liquidation event, ETF flows remain resilient, even continuing to skew bullish during drawdowns, demonstrating the stickiness of crypto demand from TradFi investors,” Perfumo said.
October 10 saw positions worth almost $20 billion liquidated after US President Donald Trump threatened to slam Chinese exports with a 100% tariff.
The CME FedWatch tool shows a 100% chance of a 0.25% cut in interest rates on Wednesday. Data from the crypto betting platform Polymarket backs that sentiment up, showing a 98% chance of a cut.
