Ethereum Rockets 60% in July—Fresh Money Floods In (No, Bitcoin Isn’t Bleeding)
ETH's bull run isn't stealing from Bitcoin—it's feasting on new cash injections. Here's why the smart money's piling in.
The Whale Move Wall Street Missed
While traditional finance was busy shorting meme stocks, Ethereum quietly absorbed $60B+ in fresh capital last month. No Bitcoin sell-off required—just pure, unfiltered demand for DeFi's backbone.
Gas Fees vs. Institutional FOMO
Network congestion? Please. Big players are swallowing those $100+ transaction costs like it's 2021 all over again. The calculus changed when ETH became the only altcoin with SEC-approved ETFs.
The Cynic's Corner
Of course hedge funds are 'long-term believers' now—they finally found an asset that lets them charge 2-and-20 fees on something shinier than gold ETFs.
Next resistance level? Try the psychological $10K barrier—because in crypto, round numbers matter more than fundamentals.
What to Know:
- Ethereum's July rally reflected fresh investment rather than capital rotation from Bitcoin, according to on-chain data analysis
- Bitcoin's Realized Cap reached an all-time high of $1.018 trillion on July 25, indicating continued capital inflows
- Total Value Locked in Ethereum DeFi platforms increased from $49 billion to $84.6 billion between April 29 and July 29
Independent Capital Flows Challenge Rotation Theory
CryptoQuant contributor Carmelo Aleman disputed claims that Ethereum's price surge resulted from Bitcoin capital rotation, citing Bitcoin's Realized Cap data. The Realized Cap measures total value of circulating Bitcoin based on each coin's last transaction price rather than current market value, providing insight into actual capital investment patterns.
Bitcoin achieved a new all-time high Realized Cap of $1.018 trillion on July 25 at 11 AM UTC. This metric's continued growth alongside Ethereum's rally suggests both cryptocurrencies attracted independent capital flows during the period.
Aleman noted that Bitcoin's gradual Realized Cap increases often occur during price consolidation phases. These accumulation periods have historically preceded significant rallies in Bitcoin's price trajectory.
Network Activity Metrics Support Growth Narrative
Ethereum network fundamentals reinforced the fresh capital thesis through multiple indicators. Daily transactions on the ethereum network reached nearly 1.48 million on July 27, according to etherscan.io data, reflecting increased network utilization.
The decentralized finance sector experienced substantial growth during the rally period.
Total Value Locked across Ethereum DeFi platforms jumped from $49 billion on April 29 to $84.6 billion by July 29, according to DefiLlama tracking data.
Exchange reserves provided additional evidence of supply dynamics. Centralized exchanges saw Ethereum holdings decrease by one million coins over the past month. This outflow pattern typically indicates reduced selling pressure and potential supply constraints.
Staking Activity Reaches New Heights
Ethereum liquid staking protocols achieved a record milestone with 35.5 million ETH now locked in these systems. The staking surge occurred alongside the broader network activity increases observed throughout July.
Market observers suggested the declining circulating supply contributed to upward price pressure. The combination of exchange outflows and increased staking activity reduced available trading supply during a period of heightened demand.
Closing Thoughts
On-chain metrics demonstrate Ethereum's July rally reflected genuine network growth and fresh capital allocation rather than rotation from Bitcoin, which simultaneously experienced its own capital inflows to record levels. The convergence of increased transaction activity, DeFi growth, and supply reduction through staking created favorable conditions for Ethereum's 60% monthly gain.
