Ethereum in 2025: NFTs, ETFs, and Institutional Adoption
People sometimes ask me if Ethereum is having a "moment," and honestly, 2025 feels like watching a financial soap opera where the plot keeps getting more interesting. You've got the Ethereum Foundation doing musical chairs with its leadership, major network upgrades rolling out, and an altcoin season that's being more cautious than a pension fund's risk committee.
But here's what's actually fascinating: while everyone was debating whether DeFi had jumped the shark, two genuinely surprising trends emerged. First, NFTs are back with a vengeance, which is either proof that markets are cyclical or that people have short memories about digital monkey pictures. Second, institutional money is flowing into spot Ethereum ETFs with the kind of enthusiasm usually reserved for Treasury bills during a banking crisis.
These aren't just quirky market anomalies—they're fundamentally reshaping how people think about Ethereum's role in the broader financial ecosystem. The combination of renewed retail interest and serious institutional capital suggests something more substantial than your typical crypto cycle.
In this piece, I'll examine what's actually happening with Ethereum in 2025, dig into the data behind the NFT revival, analyze institutional adoption through ETF flows, and consider what this means for smart contract platforms.
Ethereum: Is it Still Relevant in 2025?
In a dynamic market filled with new competitors, ETH has demonstrated remarkable resilience and continued relevance in 2025. The cryptocurrency has shown a moderate performance, with its year-to-date (YTD) gains standing at 6.06% as of August 4, 2025. The most significant price action occurred between early July and early August, when ETH surged nearly 40% amid rising institutional interest.
The network's fundamentals have also remained strong. In May, the Pectra upgrade went live, introducing major improvements like smart account wallets (via account abstraction), improved scalability, and higher staking limits for validators. These upgrades contribute to Ethereum's long-term network health and could have played a minor to moderate role in raising renewed investor interest in the protocol.
In decentralised finance (DeFi), Ethereum's market share grew from 56.6% to 59.25% in 2025, with its total value locked (TVL) surging by 21.22% YTD to $79.15 billion by August 4. It also continues to lead the non-fungible token (NFT) market, commanding $287 million in sales over the last 30 days. This growth is further bolstered by the rise of Ethereum treasury companies and the launch of US-based spot ETH ETFs last year, signalling that both corporate and institutional players are betting on its future.
The Revival of the NFT Market
After a prolonged cooldown, the NFT market on Ethereum is experiencing a significant revival in 2025, driven by renewed collector interest and trading activity. In the last 30 days, Ethereum-based NFTs have generated $287 million in sales and a trading volume of $345 million, representing a surge of 69.81% and 76.95%, respectively, compared to the previous period.
This renewed hype is also reflected in user growth. The number of unique sellers increased by 20.96% to 26,748, while the number of buyers grew to 31,012 over the past 30 days.
Interestingly, while the value of trades has soared, the total number of NFT transactions decreased by 38.64% to 786,030 during the same period. This suggests that the current revival may be driven by higher-value collections and more substantial trades rather than sheer transaction volume, potentially indicating a maturing market for digital collectibles on the platform.
Exploring the Ethereum ETF Market in 2025
Roughly one year after the US Securities and Exchange Commission (SEC) approved the first spot Ethereum ETFs in July 2024, their impact on institutional adoption is undeniable. By August 1, 2025, investors held $20.11 billion in net assets across these US-based ETFs, accounting for approximately 4.70% of Ether's total market capitalisation.
Despite large outflows recently, investor appetite remains strong. US Ether ETFs registered a record-breaking $5.43 billion in net inflows during July 2025 alone.
The launch and growing demand for these regulated products are crucial for several reasons. Firstly, they provide a stamp of institutional legitimacy, making ETH an accessible asset class for large-scale investors and wealth managers.
Secondly, they simplify the investment process for retail participants, allowing exposure to ETH through traditional brokerage accounts without the technical complexities of self-custody. This influx of new capital creates significant demand, provides deeper market liquidity, and strengthens overall market sentiment for Ethereum.
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The convergence of network upgrades, a resurgent NFT market, and record institutional inflows via ETFs paints a bullish picture for Ethereum in 2025. These factors not only affirm its current market leadership but also lay a strong foundation for potential future growth.
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Risk Disclosure
Trading or investing in crypto assets is risky and may result in the loss of capital as the value may fluctuate. VALR (Pty) Ltd is a licensed financial services provider (FSP #53308).
Disclaimer: Views expressed in this article are the personal views of the author and should not form the basis for making investment decisions, nor be construed as a recommendation or advice to engage in investment transactions.