Ethereum (ETH) Has Recovered 56% Over the Past Month, Reaching $2,565.95

Ethereum (ETH) has recovered 56% over the past month, reaching $2,565.95 at the time of writing on May 15, 2025.

Ethereum (ETH) has experienced a 56% recovery over the past month, reaching $2,565.95 at the time of writing on May 15, 2025. This renewed growth for Ethereum, following months where it lagged Bitcoin and newer Layer 1 competitors, highlights shifts in institutional strategy, emerging blockchain technology use cases, and a broader market move away from single-asset dominance.

The ETH recovery began around April 24, when ETH traded below $1,700, and accelerated between May 8 and May 13, briefly passing $2,700 before stabilizing.

Structural Developments Drive Ethereum’s Resurgence

While general crypto market sentiment has improved, Bernstein, a research firm, highlights key structural developments in a client note, contributing to Ethereum’s rise. These factors include increased activity in stablecoin payments, the expansion of Layer 2 networks, and a notable change in hedge fund trading behavior concerning ETH.

Ethereum Strengthens Hold on Stablecoin and Tokenization Networks

According to Bernstein, Ethereum’s role within the stablecoin and tokenization network is expanding. The Ethereum network now supports over half of the total stablecoin supply. This foundational role is growing in importance as traditional companies, like Stripe with its $1.1 billion acquisition of stablecoin platform Bridge and Meta’s renewed focus on its stablecoin project, are entering the crypto space.

Moreover, the broader use of stablecoin payments and tokenized securities is propelling Ethereum into a central platform for these transactions.

Dominance in Real-World Asset Tokenization Boosts Ethereum

This increased focus aligns with Ethereum’s growing dominance in the real-world asset (RWA) tokenization market. Data from RWA.xyz indicates a market size of over $22 billion, with major asset managers, such as BlackRock and Franklin Templeton, deploying assets on-chain.

As Ethereum remains the preferred platform for these tokenized financial products, its significance in institutional blockchain adoption is expanding.

Layer 2 Ecosystem and Institutional Use Cases Expand ETH Value

Institutional adoption is also evident through Ethereum’s Layer 2 ecosystem. Networks like Base, started by Coinbase (NASDAQ:COIN), generated roughly $84 million in revenue last year. These Layer 2s operate on Ethereum and require ETH for gas and settlement.

Bernstein suggests that their adoption by firms like Robinhood (NASDAQ:HOOD), which recently acquired WonderFi, an Ethereum Layer 2 operator, could expand tokenized offerings through retail brokerage platforms. This activity supports Ethereum’s value through increased usage and transaction volume.

Shifting Hedge Fund Strategies Favor Ethereum

Finally, changes in trading patterns are contributing to Ethereum’s recent price increase. Over the past 18 months, hedge funds have often used ETH as part of delta-neutral strategies, going long on BTC or SOL while shorting ETH. This short positioning is being reversed as the market narrative shifts toward blockchain utility and away from solely store-of-value use.