Ethereum’s $8K dream gets real

July 21, 2025

 

Reading time: 5 minutes

Ethereum’s upgrade era: Gas limit, NFTs, Nasdaq listing fuel $8K surge talk

Key points:

  • Ethereum validators have signaled support for a gas limit hike to 45 million, while ETH nears $4K amid a 27% weekly rally.

  • Ethereum-based NFTs dominated sales charts, and a $1.5B SPAC listing could unlock broader institutional exposure.

News - Ethereum is entering a high-stakes upgrade cycle, with 49% of validators signaling support for raising the gas limit to 45 million. This move could significantly boost network throughput. The change, expected to ease congestion and reduce transaction fees, comes as ETH soared past $3,800 over the weekend, up 27% from $3,000 on July 14.

Vitalik Buterin and Ethereum Foundation developers confirmed the intent to scale further, hinting at plans beyond 45 million gas units. This surge in validator alignment echoes February’s raise to 36 million and aligns with rising institutional interest.

Meanwhile, ETH-powered NFTs are riding the bullish wave. Nine of the top 10 NFT collections by weekly sales volume are Ethereum-based, led by CryptoPunks and Pudgy Penguins. CryptoPunks posted a staggering $15.5M in sales, while BAYC and others also saw four-digit percentage gains. DappRadar and NFT Price Floor confirmed Ethereum’s dominance in both volume and market cap.

Institutions jump in - In another bullish catalyst, the Ether Reserve will list on Nasdaq via a SPAC merger with Dynamix Corp, forming "The Ether Machine" (ETHM). Backed by $1.5B in ETH from Andrew Keys and other prominent investors, the listing offers public exposure to staking and DeFi yields, just as ETH pushes toward $4,000.

Lost supply, tight circulation - Yet another supportive factor? Scarcity. Coinbase’s Conor Grogan revealed over 913,000 ETH, worth $3.4B, has been permanently lost to bugs and user errors, on top of 5.3M ETH burned via EIP-1559. Combined, that’s 5% of Ethereum’s total supply wiped from circulation.

$8K in sight? - With these converging tailwinds, some analysts see ETH entering a “final surge” phase toward $8,000. Gert van Lagen points to an expanding diagonal pattern resembling the Dow Jones’ 1980 bull run, reinforced by a textbook ascending triangle that could trigger an 80% rally. Add in ETF inflows and rate-cut optimism, and some firms, like ConsenSys, project a $4,900 ETH base price by year-end.

Ethereum inflows double to $2.1B, push crypto funds to record $4.4B weekly high

Key points:

  • Crypto funds posted a record $4.4 billion in weekly inflows, led by Ethereum’s $2.12 billion surge, nearly double its prior high.

  • The influx pushed 2025 ETH inflows to $6.2 billion, surpassing all of 2024’s total, with analysts warning of a potential late-cycle peak.

News - Ethereum is once again stealing the spotlight. The altcoin saw an explosive $2.12 billion in inflows last week, its largest weekly total ever, helping drive crypto funds to a record $4.39 billion in net inflows, according to CoinShares. This eclipses the previous high of $4.27 billion recorded post-U.S. elections in December 2024.

The rally extends crypto’s 14-week inflow streak and brings year-to-date totals to $27 billion. ETH alone now accounts for $6.2 billion of that, already exceeding its full-year tally from 2024. CoinShares noted that these past 13 weeks represent 23% of Ethereum’s assets under management, a signal of intensifying institutional conviction.

Bitcoin investment products still led overall, with $2.2 billion in inflows. However, Ethereum’s near-parity is notable, especially as its price jumped 25% last week, outperforming most altcoins.

ETF surge, institutional demand, and market rotation - The explosive demand comes amid new entrants like Sharplink Gaming and BitMine, which now hold over $1 billion in Ethereum. Coupled with record ETF flows, ETH’s price neared $3,800 this week, surpassing the combined market cap of Goldman Sachs and Bank of China.

But not all signs point to euphoria. Analysts like Ran Neuner and Benjamin Cowen cautioned that ETH’s dominance, while bullish short-term, might reflect a late-cycle phase, historically followed by broader market corrections.

U.S. issuers buck the trend - Interestingly, U.S. ETF issuers like ARK Invest and Fidelity saw combined outflows of nearly $200 million, even as the broader market hit records. Analysts attribute this to fund rotation and profit-taking.

Bitcoin's bull run stalls as altcoins surge, dominance drops by 5.8%

Key points:

  • Bitcoin dominance slid by 5.8% in a week, the biggest drop in three years, while BTC hovered below $120K.

  • Altcoins like ETH gained market share as traders rotated profits, with BTC’s correlation to the wider market weakening sharply.

News - Bitcoin’s rally has hit a wall just under $120,000, as profit-taking activity reaches a 7-month high and short-term trading surges. Meanwhile, altcoins are commanding increased attention, leading to the steepest weekly drop in Bitcoin market dominance since 2022.

According to TradingView, Bitcoin’s market share fell by 5.8% in just one week, its largest decline in three years, dropping below 61% for the first time since March. At the same time, the total crypto market cap climbed from $3 trillion to $3.8 trillion, with Ethereum and memecoins leading the charge.

One key driver is unit bias: With Bitcoin becoming pricier, new retail entrants are flocking to cheaper altcoins, creating capital rotation. On-chain data from Alphractal suggests BTC’s correlation with altcoins has turned negative, which is a rare signal that often precedes major volatility and forced liquidations.

Whales buy the dip, but momentum fades - While retail investors pivot away, institutions continue to stack BTC. Strategy bought 6,220 BTC last week for $740 million, bringing its holdings to 607,770 coins. Sequans added another 1,264 BTC worth $150 million, and Trump Media disclosed a $2 billion Bitcoin reserve.

Despite this bullish activity, on-chain indicators point to saturation. Realized profit-taking hit its highest level in seven months, while BTC’s velocity, a measure of trading activity, is also climbing. These metrics highlight growing uncertainty in Bitcoin’s short-term trajectory.

Consolidation ahead, or breakdown below $115K? - Bitcoin’s current resistance lies near $120K, with sideways movement expected between $117K–$120K. If selling pressure intensifies, a drop toward $115K or even $110K isn’t off the table.

Conflux surges 115% as China’s 'Ethereum' unveils stablecoin and 3.0 upgrade

Key points:

  • CFX rallied over 115% in 24 hours, reaching a 7-month high of $0.23 as trading volume spiked by 2,955%.

  • The rally was driven by Conflux 3.0 and a new yuan-pegged stablecoin, both announced during a Shanghai conference backed by state-linked coverage.

News - Conflux (CFX), dubbed the “Chinese Ethereum,” has erupted back into the spotlight after surging more than 115% in just 24 hours. The explosive move followed two major announcements: the upcoming Conflux 3.0 network upgrade and a new offshore yuan-backed stablecoin, both revealed during a high-profile conference in Shanghai.

The stablecoin initiative, a collaboration between Conflux, fintech firm AnchorX, and Eastcompeace Technology, aims to serve cross-border payments along China’s Belt and Road Initiative (BRI) routes. Notably, it also received in-principle approval from Kazakhstan’s regulator, signaling regional interest beyond China.

Meanwhile, Conflux 3.0, scheduled to launch in August, promises 15,000 transactions per second, native support for on-chain AI agents, and improved settlement infrastructure for real-world asset issuance. The announcement helped push CFX’s price to its highest level since December, while daily trading volume soared to $1.8 billion, up from under $60 million just days earlier.

China’s stablecoin strategy and global reach - Conflux’s surge comes amid intensifying competition in the Chinese stablecoin ecosystem. Over 40 stablecoin license applications have reportedly been submitted in Hong Kong, including by firms like Ant Group and JD.com. Conflux’s move adds a compliant, Belt-and-Road-aligned alternative to the mix, which is a significant distinction amid China’s typically cautious crypto stance.

More than just hype? - Institutional signals are also emerging. A recent MOU revealed that Innovative Pharmaceutical Biotech is exploring a deal that would involve acquiring Conflux-related blockchain assets, being a nod to long-term confidence in the protocol. While questions remain around the new stablecoin’s exact structure, market enthusiasm is undeniable for now.

Did you know?

  • Four Bitcoin addresses now hold over 100K BTC (~$66B) - As of mid‑June 2025, only four wallets each contained at least 100,000 BTC, representing roughly $66 billion in holdings. This underscores the outsized influence whales still have over liquidity.

  • Ethereum recorded 20 million active addresses in a single week - In June 2025, Ethereum saw a peak of 20 million unique addresses interacting over just one week, which is the highest level of weekly engagement in its history.

  • Bitcoin just hit a new ATH around $123K this month - On July 14, 2025, Bitcoin surged to an all-time high near $123,000. This was fueled by a recent record $1.18  billion inflow into spot BTC ETFs in just one day.

Top 3 coins of the day

Pudgy Penguins (PENGU)

Key points:

  • At press time, PENGU was trading at $0.037, up 21.58% from its previous daily close.

  • The RSI climbed to 82.23, entering overbought territory, while price soared well above the 9-day SMA with strong volume support.

What you should know:

PENGU’s price jumped past multiple resistance zones to mark a fresh local high, after rallying nearly 200% since early July. This breakout followed sustained bullish pressure above the $0.026 level. The coin’s recent daily candle closed significantly higher than its 9-day Simple Moving Average (SMA), confirming upward momentum. Moreover, the Relative Strength Index (RSI) touched 82.23, reflecting overheated yet strong buying interest. A sharp rise in volume over the last three sessions pointed to renewed retail and community participation. Additionally, Binance removed PENGU’s Seed Tag on July 21, reducing perceived risk and likely improving access and liquidity. If bulls maintain control, the $0.040 zone could be the next key resistance, while the $0.031 level may act as near-term support.

Cardano (ADA)

Key points:

  • ADA climbed to $0.92, reflecting a 7.47% gain from the previous session’s close.

  • The price remained above the 9-day SMA, while the Awesome Oscillator continued to print strong green bars above the zero line.

What you should know:

Cardano extended its bullish streak, closing well above the $0.86 resistance and breaking into territory last seen in March. The coin maintained its position above the 9-day Simple Moving Average (SMA), reinforcing the short-term uptrend. Volume remained elevated, indicating sustained interest. The Awesome Oscillator (AO) printed strong green bars above the zero line, reflecting continued upward momentum. Contributing to the rally was renewed confidence following Charles Hoskinson’s announcement that an independent audit addressing $600M ADA fund misuse allegations would be published by mid-August. The $0.86–$0.88 range is now likely to act as support, with the $0.98–$1.00 region emerging as the next resistance to watch.

Solana (SOL)

Key points:

  • At press time, SOL was trading at $190, reflecting a 5.16% increase from the prior day’s close.

  • The Supertrend continued flashing a buy signal, while the MACD displayed rising bullish momentum above zero.

What you should know:

Solana continued its uptrend, riding on news of a $200M partnership between Mercurity Fintech and Solana Ventures aimed at validator growth, staking, and DeFi investment. The deal triggered fresh institutional inflows and added confidence to the rally. Volume remained elevated, supporting strong upward pressure as SOL reclaimed the $190 level. The MACD line widened above the signal line, while the histogram printed larger green bars, highlighting bullish strength. The Supertrend buy signal, active since July 9, continued offering supportive confirmation. If momentum holds, SOL could test the psychological $200 mark, with $178 acting as near-term support.

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