Ethereum (ETH) has surged past the $800 mark, reaching an intraday high of $825 — its highest price since May 2018. This milestone marks a significant moment for the second-largest cryptocurrency by market capitalization, reflecting renewed investor confidence and growing network adoption. At the time of writing, ETH is trading at $817, up 5.3% over the past 24 hours.
Kraken exchange data confirms the breakout, underscoring a bullish reversal that long-term holders have waited nearly 972 days to witness. Over the past seven days alone, Ethereum has climbed approximately 26%, rising from $636 to $817. Its 24-hour trading volume has surged to $22.6 billion, while its market cap now exceeds $912 billion — firmly securing its position as the second-most valuable digital asset.
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Ethereum Outperforms Bitcoin in Annual Gains
While Bitcoin (BTC) saw a strong 300% increase over the previous year, Ethereum has significantly outpaced it in terms of price appreciation. From a starting value of around $130 in early 2020, ETH climbed to $750 — a 477% gain. If measured from its March 2020 low of $106, the surge reaches an impressive 607.5%.
Despite recent strength in Bitcoin, Ethereum continues to demonstrate robust momentum. The ETH/BTC trading pair, which reflects Ethereum’s relative performance against Bitcoin, rose from 0.017 at the beginning of 2020 to a peak of 0.04 by September — a 135% increase — before settling at 0.023 at the time of writing.
This shift highlights changing dynamics in institutional and retail interest, with Ethereum benefiting from broader use cases beyond store-of-value narratives.
Record Number of Ethereum Addresses Holding ETH
One of the most telling indicators of Ethereum’s growing adoption is the rising number of addresses holding at least one ETH. According to on-chain analytics platform Glassnode, the count stood at just 34.7 million in January 2020. By year-end, it had grown to over 51.49 million — a 48% increase and a new all-time high.
This surge correlates directly with the explosive growth of decentralized finance (DeFi) throughout 2020. DeFi applications, built primarily on the Ethereum blockchain, enabled users to lend, borrow, trade, and earn yield without intermediaries — attracting both retail and institutional interest.
Andrew Peel, Morgan Stanley’s head of digital asset markets, noted that DeFi is poised for continued expansion, further validating Ethereum’s role as the foundational layer for next-generation financial infrastructure.
👉 Learn how DeFi innovations are driving Ethereum’s long-term value.
Institutional Confidence in Ethereum Grows
Beyond retail participation, institutional adoption is accelerating. Grayscale, the world’s largest digital asset manager, completed a 1-for-9 share split for its Ethereum Trust (ETHE) in December. This move increased the number of available shares from 29.5 million to 285 million, lowering the entry barrier for investors and enhancing market liquidity.
The share split signals Grayscale’s expectation of rising demand from institutional buyers who seek exposure to Ethereum through regulated investment vehicles.
Similarly, Canada-based asset manager 3iQ launched its Ether Fund (QETH.U), which began trading on the Toronto Stock Exchange (TSX). The fund successfully raised approximately $76.5 million through its initial offering, attracting both accredited and retail investors.
These developments illustrate a maturing ecosystem where traditional finance increasingly recognizes Ethereum not just as a speculative asset, but as a core component of diversified portfolios.
Why Experts Believe Ethereum Is Still Undervalued
Despite its impressive rally, some industry leaders argue that Ethereum remains undervalued compared to its all-time high. Cameron Winklevoss, co-founder of Gemini exchange and long-time crypto advocate, stated:
"ETH is only trading at about half of its all-time high. It’s easily the most underpriced crypto in the world right now."
This sentiment echoes growing optimism that Ethereum’s fundamentals — including smart contract capabilities, developer activity, and DeFi integration — are not yet fully reflected in its price.
With Bitcoin having already surpassed its previous peak, many investors are turning to Ethereum as a high-growth alternative with strong network effects and real-world utility.
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Frequently Asked Questions (FAQ)
Q: What caused Ethereum to break above $800?
A: A combination of rising DeFi adoption, increased institutional investment via products like Grayscale’s ETHE and 3iQ’s Ether Fund, and strong retail demand contributed to Ethereum’s breakout above $800.
Q: How does the number of ETH holders affect price?
A: An increasing number of addresses holding ETH indicates growing network confidence and demand. Historically, such trends precede sustained price increases due to reduced circulating supply and stronger market sentiment.
Q: Is Ethereum still a good investment after this rally?
A: Many analysts believe so. With ongoing upgrades like Ethereum 2.0 improving scalability and security, and DeFi activity continuing to grow, Ethereum maintains strong long-term fundamentals.
Q: What is the significance of Grayscale’s share split?
A: The 1-for-9 split makes ETHE shares more affordable and accessible to smaller investors, increasing liquidity and potentially attracting more capital from institutions and retail buyers alike.
Q: How does Ethereum compare to Bitcoin in terms of growth potential?
A: While Bitcoin is often seen as digital gold, Ethereum offers utility through smart contracts and dApps. Its higher growth potential comes from active development and expanding use cases in DeFi, NFTs, and Web3.
Q: Could Ethereum reach new all-time highs in 2025?
A: Based on current adoption trends, network upgrades, and increasing institutional interest, many experts believe Ethereum is well-positioned to surpass its previous highs in the coming years.
The convergence of technical innovation, financial product development, and global demand suggests that Ethereum’s journey is far from over. As the ecosystem evolves, it continues to solidify its status as the backbone of decentralized applications and digital asset innovation.