Recently, the price of Ethereum (ETH) has surged significantly, and there are several driving factors behind this phenomenon. Let's analyze it in depth:

First, the policy environment is undergoing positive changes. There are reports that Trump will sign an executive order in August 2025, allowing the retirement savings plans (401(k) account) of American wage earners to invest in cryptocurrencies. This potential policy change could open the door for traditional funds to enter the crypto market, prompting institutions and large investors to position themselves early, thus driving up the price of ETH rapidly.

Secondly, the development momentum of Ethereum spot ETFs is strong. Since August, the ETH spot ETF has shown a significant trend of capital inflow, with a cumulative net inflow exceeding 4.2 billion USD and a weekly inflow of 10.6 million ETH, setting a record of seven consecutive weeks of growth. With the improvement of the regulatory environment, ETH is expected to become the first cryptocurrency that is both compliant and capable of providing annualized returns, which is highly attractive to institutional and high-net-worth investors.

Thirdly, the actual application value of Ethereum is becoming increasingly prominent. As the infrastructure for decentralized finance (DeFi) and smart contracts, as well as the core platform for tokenizing real-world assets (RWA), the actual value of ETH continues to enhance. In July 2025, the daily transaction volume of the Ethereum network reached a historic high of 1.74 million transactions, surpassing the peak during the bull market of 2021. At the same time, the amount of ETH held by enterprises surged by 127.7%, reaching 2.7 million, reflecting the growing confidence of institutions in ETH.

Finally, the trend of capital allocation is also supporting the price of ETH. More and more companies are starting to include ETH in their asset allocation, which signals a potential turning point in the capital landscape. In addition, with the advancement of stablecoin legislation, a large amount of stablecoins may enter the blockchain ecosystem in the future, a significant portion of which is expected to be deployed on the Ethereum network, providing long-term support for the price of ETH.

In summary, multiple factors such as improved policy environment, compliance processes, ecosystem development, and trends in capital allocation have jointly driven the recent price increase of ETH. Although it is still necessary to pay attention to policy details, the actual operation of ETFs, and the progress of ecological applications in the future, under the current trend, Ethereum's value proposition is continuously being strengthened. This series of developments may open a new chapter for the cryptocurrency market.