Iris Coleman
Aug 31, 2025 12:47
Ethereum’s position strengthens as the GENIUS Act passes in the US, boosting stablecoin and digital asset custody, with significant implications for the crypto market.
Ethereum (ETH) has recently experienced a surge in momentum, driven by key regulatory developments and market dynamics, according to CoinShares. The passage of the GENIUS Act in the United States marks a pivotal moment, providing regulatory clarity for U.S. banks and financial institutions to issue payment stablecoins and custody digital assets. This legislation, though not directly authorizing tokenized deposits, lays the groundwork for future innovations, potentially enabling the tokenization of large amounts of government debt and money market funds on-chain.
Impact on Ethereum
Ethereum’s dominance in stablecoin settlement is underscored by its $146 billion share of the $280 billion total stablecoin market cap. The network also hosts around 52% of the tokenized real-world assets (RWA) market. These factors position Ethereum to be a primary beneficiary of the GENIUS Act, as expectations build for increased regulated on-chain activity to flow through Ethereum and its Layer 2 solutions.
Projects like JPMD, JPMorgan’s tokenized deposit initiative on Base, exemplify how institutions are preparing to leverage Ethereum’s infrastructure for settlement. Meanwhile, Ethereum’s technical outlook remains robust, with the ETH/USD and ETH/BTC ratios reflecting favorable trends.
Market Dynamics and Altcoins
While Ethereum continues to attract interest, the broader altcoin market presents a more nuanced picture. Unlike previous cycles where any top altcoin could outperform Bitcoin, the current market rallies are driven by distinct catalysts. Solana, for example, has emerged as a leading decentralized exchange platform, while projects like Chainlink and Hyperliquid demonstrate unique value propositions.
Bitcoin’s market dominance has declined by 5% over the past month, as select altcoins, such as Solana and Chainlink, gain traction. This rotation suggests a shift into specific asset pockets rather than a broad altcoin season.
Solana’s Promising Outlook
Solana’s technical setup appears constructive ahead of potential U.S. regulatory approvals for Spot ETFs. The network has seen significant upgrades aimed at enhancing transaction throughput and efficiency. The adoption of a new consensus client, alpenglow, is expected to improve finality and reduce operational costs for validators, making Solana an attractive asset amid market volatility.
Overall, Ethereum’s strengthened regulatory position and the evolving dynamics of the altcoin market highlight the ongoing shifts within the crypto landscape. For more information, visit the original [CoinShares](https://blog.coinshares.com/some-quick-thoughts-on-ethereum-and-altcoins-15c847f41157) article.
Image source: Shutterstock
