Why Ethereum Is Outperforming Bitcoin in 2025 – Explained Simply

umberto visentin
3 ago
Tempo di lettura: 2 min

(Made clear for everyone — even non‑tech readers)

Imagine Bitcoin as a classic gold coin — solid, stable, predictable. Now think of Ethereum as a smart phone: evolving and opening up endless possibilities. In mid‑2025, Ethereum soared far more than Bitcoin. In this article, you’ll learn why it happened, in simple language, with real examples and clear explanations.

1. What does "outperforming" mean?

“Outperforming” here means Ethereum’s price rose much more than Bitcoin’s. For example, in July 2025, ETH went up ~54%, while BTC increased only ~10%

2. The Vital Catalyst: Ethereum ETFs

Several companies like BlackRock, Fidelity, Grayscale launched spot Ethereum ETFs.
July inflows reached $123.5 billion in total trading volume.
These funds attracted institutional investors, shifting capital into ETH.
ETH ETFs also include staking options, providing yield — unlike Bitcoin ETF products.

Term explained: ETF = Exchange-Traded Fund, a regulated investment vehicle like a stock, making it easy for big investors to own ETH.

3. Institutional demand & corporate treasuries

Companies like BitMine Immersion and SharpLink Gaming increased their ETH holdings — some stock prices jumped 25–400% following the shift.
Over 1 million ETH (around 2% of total supply) is now held by corporate treasuries.

Real‑life example: A gaming company switched from Bitcoin mining to acquiring ETH — its stock soared 30%.

4. Regulatory Clarity Helps

U.S. passed the GENIUS Act, defining stablecoins as regulated entities; 90% of U.S. stablecoins run on Ethereum.
EU's MiCA and U.S. crypto ETF approvals gave institutions confidence in Ethereum’s future.

5. Ethereum’s Utility: Staking, DeFi & Tokenization

Ethereum is programmable: supports decentralized finance (DeFi), NFTs, tokenized assets, etc. In 2025, about 75% of all crypto apps run on ETH.
Staking lets holders lock ETH to support the network and earn ~4–6% annual returns — a passive income model Bitcoin can’t match.

Term explained: Staking is like earning interest: you deposit ETH to help secure the network and get paid rewards.

6. Supply Side Dynamics: “Ultrasound Money”

Ethereum burns transaction fees and the 2022 Merge switched to Proof-of-Stake, reducing supply growth and making ETH effectively deflationary over time.
This mechanism — shrinking supply as usage increases — is called ultrasound money.

7. Bitcoin’s Strengths—and Its Limits in 2025

Bitcoin remains strong: between July 2023 and 2025 it rose ~301.7%, outperforming gold and the S&P 500.
But BTC is relatively static—no staking, mainly value storage. In 2025, ETH’s use in finance and regulation gave it broader appeal.

Conclusion: What it means for you

Ethereum’s 2025 outperformance isn’t just price action—it reflects deeper shifts: regulatory support, institutional capital, and programmable finance. For anyone considering crypto exposure now, ETH offers utility, yield, and growth potential beyond Bitcoin.

Quick takeaway table

Why ETH Beat BTC in 2025	What Ethereum offers you
ETF inflows & institutional adoption	Regulated access via ETF expansion
Corporate treasury demand	Yield via staking, inflation protection
Staking and DeFi utility	Practical use, not just speculation
Supply shrinking (“ultrasound money”)	Long-term value retention