Ethereum’s underlying metrics and institutional activity indicate outperformance versus Bitcoin even as its market price remains below $3,000. This divergence between price and fundamentals positions ETH as a structurally resilient asset for institutional treasuries and sophisticated market participants..
Supply, DeFi footprint and network utilization
Ethereum’s recent performance is anchored in measurable shifts in supply and usage. In Q3 2025, the token appreciated 65% compared with Bitcoin’s 6% over the same period, while more than 855,158 ETH have been removed from liquid markets through fee burning and increased staking at a reported staking APR of 4.8%. These dynamics collectively reduce circulating supply and reinforce longer-term lockup behaviour that supports Ethereum’s medium-term risk profile.
DeFi activity further differentiates Ethereum from custody-focused networks. Total value locked on Ethereum reached $76.5 billion in Q3 2025, representing around 63% of overall DeFi TVL, and the chain holds over half of stablecoin market share while supporting roughly 20% of spot trading volume. These indicators underscore Ethereum’s role as core execution and settlement infrastructure for DeFi rather than a purely speculative asset.
Protocol upgrades are reinforcing this position. The recent Fusaka upgrade, which added proto-danksharding improvements, has materially increased throughput and lowered transaction fees, directly reducing friction for decentralized applications. The combination of lower fees, higher scalability and a 13.4% weekly increase in new addresses signals ongoing user onboarding despite the token’s sub-$3,000 price.
Institutional activity is moving in parallel with retail and DeFi growth. A major bank has launched a tokenized money-market fund on Ethereum, using the network as programmable settlement infrastructure for a traditional cash instrument. Even with recent outflows from Ethereum-focused ETFs in December 2025, the redemptions have been smaller than comparable Bitcoin ETF outflows, suggesting relatively stronger institutional conviction in Ethereum’s utility profile.
Settlement data further highlights Ethereum’s role in real-world financial flows. Stablecoin settlement volumes on Ethereum have been reported as exceeding those of global card networks, illustrating its relevance for high-frequency payments and transfer use cases. For traders and institutional treasuries, this blend of locked supply, protocol upgrades and robust settlement activity creates a distinct profile that combines yield opportunities with heightened operational requirements around custody, liquidity management and ongoing monitoring of staking and burn rates.
Ethereum currently combines strong on-chain utility, growing institutional adoption and constrained spot pricing below $3,000, creating a structural narrative that is meaningfully different from Bitcoin’s store-of-value positioning.
