Has Ethereum finally outgrown the hype cycle?

Ethereum has always been the go-to name when crypto gets serious. Not just the coin with the second-largest market cap but the platform that promised to do more - to build, to innovate, to underpin the decentralised internet. And yet, for years, it’s often felt like Ethereum couldn’t escape the hype.

From NFT frenzies to DeFi summers, Ethereum’s price movements were driven less by what it was doing and more by what people hoped it might do next. But 2025 is telling a different story. One where Ethereum isn’t just along for the ride but starting to drive the vehicle.

After a sluggish start to the year, Ethereum has staged a sharp comeback. In just 72 hours, ETH surged more than 44%, jumping from $1,800 to over $2,400 - its strongest rally since January 2021. 

Analysts are watching closely, but this time, it’s not just retail traders and TikTok hype behind the move. It’s institutional capital, real-world applications, and signs that Ethereum is finally starting to walk the walk.

From bounce to breakout?

Ethereum still trades well below its all-time high of $4,878. But momentum is building. Market analytics platform Sentora notes that over 60% of ETH addresses are now in profit, up from just 32% a month ago. That’s not just a technical reversal; it’s a psychological one.

Adding to the intrigue, crypto investment firm Abraxas Capital quietly withdrew nearly $400 million worth of ETH from exchanges during the rally. 

Source: Lookonchain

That’s not the kind of move that suggests short-term trading. It’s the kind that says: “We’re in this for the long haul.”

Real use, not just real hype

Ethereum’s resurgence isn’t just technical, it’s functional. This year, we’ve seen projects like SUBBD, an AI-powered content platform built directly on Ethereum, shift the conversation away from speculation toward real-world utility. 

With over 250 million users, SUBBD offers decentralised, peer-to-peer content monetisation using Ethereum smart contracts - no middlemen, no platforms taking a 30% cut.

Creators and followers transact directly using $SUBBD tokens, automating payments, subscriptions, and access to premium AI features. With staking rewards around 20% APY, the platform rewards engagement in a way traditional content networks never could.

This is exactly the kind of high-utility use case Ethereum was built to support - smart contracts in the wild, not just on whitepapers.

Institutions are not just dipping their toes

Ethereum’s recent rally is being driven in part by institutional flows, and that matters. It’s one thing for retail traders to chase a narrative, quite another when ETFs, treasury desks, and major capital allocators start buying in.

With spot Ethereum ETFs now active in the US and Hong Kong, and physically settled futures on the horizon via CME, Ethereum is increasingly looking like a legitimate asset class - not just a crypto curiosity.

SUBBD may appeal to creators and AI enthusiasts, but it also represents something bigger: the idea that Ethereum isn’t just infrastructure for decentralised finance - it’s a platform for decentralised economies full stop.

What’s changed this time?

A few things. First, the fundamentals are stronger. The Pectra upgrade, which improves staking, finality speed, and validator flexibility, is helping position Ethereum for greater scalability, something that was sorely lacking during the last cycle’s congestion headaches.

Second, utility tokens like $SUBBD are no longer fringe experiments. They’re functioning products with large user bases, monetisation models, and sustainable feedback loops.

Third, and this is crucial - Ethereum’s growth isn’t being powered purely by hype anymore. The sentiment is shifting from “number go up” to “network go real.”

Still room for doubt?

Absolutely. Ethereum still faces resistance levels at $3,073, $3,700 and $4,000. And with the broader macro landscape throwing curveballs - from Fed rate policy to global election cycles - risk assets like ETH aren’t immune to shocks.

Add in regulatory grey zones around staking in the US, and the road to $12,000 (yes, some analysts are making that call) is anything but guaranteed.

But here’s the twist: for the first time in a long while, Ethereum’s success doesn’t seem to rely on price speculation alone. It’s being validated by real-world applications and long-term capital - not just hope.

Has Ethereum outgrown the hype?

It might be too soon to say it’s completely outgrown it - crypto is still crypto, after all. But Ethereum’s foundations are clearly shifting. Institutional players aren’t just buying the dip - they’re backing the ecosystem. Developers aren’t just chasing the next trend - they’re building infrastructure with users in mind.

Platforms like SUBBD are proof that Ethereum’s value is increasingly tied to what it enables, not just what it promises. That’s a big difference.

So, no, Ethereum hasn’t entirely left the hype cycle behind. But for the first time, it looks like it might be leading it rather than being led by it.

Technical outlook: Will ETH rebound?

At the time of writing, ETH is sliding with sell bias evident on the daily chart. However, volume bars show contracting sell bars which is indicative of waning sell pressure and a potential price reversal. 

Source: Deriv MT5