DeFi-Driven Bullish Sentiment Lifts Ether and Dogecoin Beyond Bitcoin Gains

Ether Surges Past Bitcoin as Institutional Demand and Tokenization Drive Market Momentum

Ether (ETH) led the cryptocurrency market rally Wednesday, soaring 5% in the last 24 hours and outpacing bitcoin (BTC), as institutional interest and tokenization of assets push the second-largest digital currency toward new heights.

Bitcoin held firm above $109,500 in early Asian trading, recovering from last week’s profit-taking, but all eyes remain on ether. Traders report increased volatility and record trading volumes for ETH products on several major exchanges.

“Ethereum’s investment appeal is becoming clearer to institutions,” said Jeff Mei, COO of BTSE, in a message to CoinDesk. “Unlike bitcoin, which is near its all-time high, Ethereum still has significant growth potential, particularly with its expanding role in real-world asset tokenization, including stocks, money market funds, and government debt.” Mei projects that ether could match or surpass its all-time high by year-end.

Ether ETFs have attracted more than $800 million in new capital over the past two weeks, more than double bitcoin’s ETF inflows, according to SoSoValue data. This influx has contributed to a widening gap in implied volatility between ether and bitcoin, reaching the highest level since late 2022, signaling traders are anticipating larger price moves for ETH.

Kraken’s ether perpetual contracts reached an all-time high open interest of 30,000 ETH this week, according to Alexia Theodorou, Kraken’s Head of Derivatives. “This uptick in speculative activity shows growing trader confidence in ether,” she said, though she cautioned that a clear directional trend has yet to emerge.

Other major altcoins also recorded gains amid the bullish momentum. Solana (SOL) climbed 4.7%, Cardano (ADA) rose 3.3%, and XRP advanced 2%. Dogecoin (DOGE) recovered 3.7%, erasing last week’s losses.

Market participants are awaiting the U.S. Consumer Price Index data release later Wednesday, which could impact Federal Reserve policy outlook and influence overall market sentiment ahead of the next Fed meeting.