Ethereum Extends Lead as Bitcoin Nears Record High, Crypto Market Tops $3.2 Trillion

Ethereum outperformed the broader cryptocurrency market in August, gaining 28% over the past month. Bitcoin also advanced, moving close to a new all-time high. The total value of digital assets has risen above $3.2 trillion, driven by strong institutional inflows, revived decentralized finance (DeFi) activity and improved investor sentiment.

Bitcoin rose 15% in August to trade near $72,500, less than 4% below its record of $75,000. It has kept a market share of about 45%, supported by steady corporate demand and reduced new supply after last year’s halving.

Ethereum’s gains have come from network upgrades, broader use of Layer 2 scaling and renewed activity in DeFi and NFT markets. The Shanghai upgrade and proto-danksharding under EIP-4844 have improved efficiency. Validator numbers are rising and the value locked in DeFi protocols is up 45% from last month.

Institutional Flows, On-Chain Strength and Macro Support
ETFs tracking Bitcoin and Ethereum are attracting record daily inflows. Some large companies are adding ETH to their balance sheets. Banks are expanding settlement and payment services using the Ethereum network.

On-chain indicators remain positive. Bitcoin’s mining hash rate is at record levels. Active addresses are increasing and exchange outflows suggest less selling pressure. Ethereum’s staking ratio is now 22% of total supply. Gas use is rising with DeFi activity, and fee burns under EIP-1559 are reducing the circulating supply.

Macro factors are also lifting prices. The Federal Reserve has kept policy loose, the U.S. dollar is weaker, and inflation is driving demand for alternative assets. Clearer guidance from the SEC and CFTC has supported U.S. sentiment. In Europe, the MiCA framework is moving forward, while parts of Asia continue to promote crypto adoption.

Bitcoin faces resistance at $75,000 and Ethereum at $2,800. A break higher could push Bitcoin to $80,000 and Ethereum to $3,200. Analysts warn that extreme optimism and the usual September weakness could lead to short-term selling.

“Ethereum is benefiting from network improvements and renewed on-chain activity, while Bitcoin’s supply limits remain a powerful driver,” said a digital asset strategist. “Investors should watch for macro risks and manage exposure carefully.”