Ethereum’s bullish trajectory continues to captivate the crypto world as institutional demand surges, positioning the digital asset tantalizingly close to the $3,000 mark. As Asia’s Thursday dawns, Ethereum is trading at an impressive $2,770, up nearly 11% this month, outpacing Bitcoin’s more modest 5% rise. This upswing, driven by institutional trading demand, highlights Ethereum’s growing appeal as a bridge between decentralized finance (DeFi) and traditional finance (TradFi). As explored in Vitalik’s Plan Can Bring ETH to $3K and Crypto ‘More Popular’ Than Stocks in South Korea, Ethereum’s potential to reach new heights is a topic of significant interest.
Institutional Interest Shifts Towards Ethereum
Lennix Lai, Chief Commercial Officer at OKX, adds a layer of intrigue to this trend. “Ethereum is overshadowing BTC on our perpetual futures market, with ETH accounting for 45.2% of trading volume over the past week,” Lai noted in a conversation with CoinDesk. This sentiment echoes across platforms like Derebit, underscoring Ethereum’s increasing dominance.
But Bitcoin isn’t completely out of the picture. Recent insights from Glassnode reveal that institutions are seizing opportunities during Bitcoin’s price dips, with long-term holders realizing significant gains—over $930 million in profits per day during recent rallies. Despite the volatility, the accumulation behavior among these holders suggests a confident long-term outlook, a dynamic atypical for late-stage bull markets. This divergence in institutional interest is further explored in Why Bitcoin and Ethereum ETF Investments Are Diverging.
Stablecoins and Emerging Protocols
Meanwhile, the stablecoin market is undergoing its own renaissance. Fuelled by a surge in investor confidence and regulatory clarity, the market has reached an all-time high of $228 billion. This liquidity influx is reshaping the on-chain capital landscape, with Tron emerging as a notable beneficiary. Tron’s ability to attract stablecoin inflows—over $6 billion in May alone—is attributed to its fast transaction finality and robust integrations with issuers like Tether.
Presto Research highlights Tron’s impressive performance in terms of daily active users and total value locked (TVL) growth, outpacing competitors like Ethereum and Solana, which are witnessing outflows and declining bridge volumes. The shift towards chains offering faster execution and dynamic ecosystems indicates a broader trend of capital rotation.
AI Agents and Crypto Rails
The burgeoning field of AI is poised for a transformative leap, but there’s a catch: these agent economies need crypto rails to thrive. According to Scott Duke Kominers from a16z Crypto, current agent-to-agent interactions are limited by siloed infrastructures. Cryptocurrencies, with their open architectures, offer a pathway to build interoperable agent economies, a necessity for the next generation of autonomous agents.
Projects like Halliday are already laying the groundwork for cross-agent workflows, while Catena and Skyfire leverage crypto to facilitate seamless transactions between autonomous agents. Coinbase’s involvement in supporting this infrastructure signifies the potential of blockchains not just as financial tools but as the backbone of an open AI economy.
Gaming’s Struggle to Retain Dominance
In contrast, the once-dominant Web3 gaming sector faces a stark reality. Despite maintaining a lead in the decentralized app ecosystem, gaming’s market share has slipped, with venture funding plummeting from over $220 million monthly at the end of 2024 to a mere $9 million in May 2025. DappRadar analysts attribute this decline to a fundamental oversight: the neglect of engaging gameplay in favor of speculative ventures and marketing.
As gaming projects like Nyan Heroes and Ember Sword shutter, the industry is reminded that without core gameplay appeal, even the most funded projects falter. It’s a narrative that has echoed since 2022, yet the lesson remains as poignant as ever.
Forward-Looking Implications
The landscape of cryptocurrency and blockchain technology is as dynamic as ever. Ethereum’s rise and the shifting stablecoin market reflect a maturation that’s reshaping the ecosystem. However, the challenges facing Web3 gaming and the infrastructural needs of AI agents highlight unresolved questions and potential growth areas. As we move further into 2025, the interplay of these forces could well define the future trajectory of the crypto space.
Source
This article is based on: Asia Morning Briefing: Institutional Buying Makes $3K ETH Likely, While AI Agents Seek Crypto Rails
Further Reading
Deepen your understanding with these related articles:
- U.S. Share of Bitcoin, Ether and Solana Trading Volume Falls Below 45% as Asia Catches Up
- SocGen’s Crypto Arm Unveils Dollar Stablecoin on Ethereum and Solana
- Ethereum Governance Tokens Spike as SEC Backs ‘Innovation Exemption’ for DeFi Projects
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
