Digital asset bank Sygnum identifies three main factors driving Ethereum's increasing price: strong fundamental developments, a supply shock, and rising institutional demand. After a stagnant performance from 2022 to mid-2025, Ethereum's price surged by approximately 140% following the successful Pectra upgrade, which improved staking and scalability. Recent favorable regulations under Donald Trump's administration have also stimulated substantial capital inflow into Ethereum. Additionally, the introduction of Ethereum exchange-traded funds (ETFs) has led to significant demand, with these funds accumulating $27.73 billion, approximately 5.31% of Ethereum's market cap. This surge in institutional interest is contrasted by a notable decline in Ethereum's supply due to staking services removing nearly 30% of Ethereum from circulation. With continued upgrades and clearer regulatory frameworks forming, experts express optimism about Ethereum's future, suggesting it could solidify its status as a core digital infrastructure.

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