Ethereum hits a three-year high, institutional funds pouring into the Web3 track triggers a new round of crypto craze

New York, July 9, 2025 - As the digital currency and blockchain industries expand rapidly around the world, the leading public chain Ethereum (ETH) has once again become the focus of the market. Recently, the price of Ethereum broke through the $4,500 mark, setting a new high since 2022, and the cumulative increase for the whole year has exceeded 140%. It is generally believed in the industry that this round of increase is not only due to the recovery of innovative applications such as DeFi and NFT, but also benefited from the promotion of a new round of institutional capital in Web3.

Ethereum ecosystem continues to prosper, DeFi and NFT rebound strongly

Since the beginning of this year, the activity of the Ethereum network has increased significantly. Dune Analytics data shows that the number of active wallets on the Ethereum chain increased by nearly 30% month-on-month in Q2 2025, mainly driven by the rebound in DeFi and NFT trading volumes. The total value locked (TVL) of star protocols such as Uniswap, Aave, and Blur hit a new high this year, reflecting the return of users and funds to the chain ecosystem.

The NFT market has also seen a recovery, with top artworks and well-known IP projects releasing new works one after another, and transaction volume continuing to rise. OpenSea data shows that the NFT transaction volume in July increased by 160% year-on-year, and market confidence has gradually recovered.

Institutional capital is accelerating its entry, and Web3 infrastructure upgrades are accelerating

Compared with the last bull market, the biggest change in this round of market is the collective entry of institutional capital. Many large venture capital and hedge funds in the United States have increased their investment in Web3 startup projects, focusing on infrastructure fields such as decentralized storage, privacy computing, and on-chain data services. Well-known institutions such as a16z, Paradigm, and Sequoia have invested more than US$5 billion in the Web3 track.

Danny Ryan, chief developer of the Ethereum Foundation, said: "The speed of innovation and openness of the Ethereum ecosystem provides a huge window of opportunity for institutions and developers. With the expansion of L2 and the implementation of Rollup technology, network performance and availability will usher in a qualitative leap."

The global regulatory environment is becoming clearer and market confidence is further enhanced

In 2025, major economies such as the United States, the European Union, and Singapore will successively introduce detailed rules for digital currency and Web3 regulation, focusing on key links such as stablecoins, DeFi, and crypto asset custody. The U.S. SEC recently approved multiple Ethereum ETF pilot products, boosting the large-scale entry of compliant funds. Experts pointed out that clear global regulation is conducive to the healthy development of the market and also enhances the status of digital assets in the mainstream financial system.

Samuel Cohen, a digital asset analyst at Wall Street, believes that “clear regulation is a prerequisite for Web3 to achieve global expansion. We see more and more traditional financial institutions starting to hold ETH and participate in on-chain governance, which indicates that digital currency and traditional finance are accelerating their integration.”

Risks and opportunities coexist, investment needs to be handled rationally

Although Ethereum and Web3 are unprecedentedly popular, investors still need to pay attention to market volatility and technical security risks. Security incidents such as contract loopholes and on-chain hacker attacks occur from time to time, and the governance transparency and compliance capabilities of the project party are particularly important.

Market experts suggest that digital asset investments should focus on portfolio diversification and risk hedging. For new institutional and individual investors, it is recommended to give priority to mainstream assets with large market capitalization, strong liquidity, and high compliance, and pay close attention to global policies and technological progress.

Outlook: Web3 may become the main engine of digital economy in the next decade

Looking ahead, mainstream institutions are generally optimistic about the long-term growth of Ethereum and the Web3 industry. As an important part of the global digital infrastructure, blockchain is expected to support innovations in multiple fields such as cross-border payments, digital identities, and virtual economy. 2025 is considered to be a key turning point for Web3 to become popular and industrialized. The digital economy may thus enter a new stage.

Jessica Lee, American blockchain and fintech columnist