Catenaa, Friday, September 05, 2025- Ethereum outpaced bitcoin and other major cryptocurrencies on Wednesday, fueled by strong capital inflows into exchange-traded funds and growing corporate digital asset treasury demand, analysts said.
Traders also monitored upcoming U.S. nonfarm payroll data ahead of the Federal Reserve’s September rate-setting meeting.
Experts attributed Ethereum’s outperformance to robust ETF inflows, supply reductions from increased staking, and persistent buying from digital asset treasury companies.
Analysts noted capital rotation from bitcoin to Ethereum as investors sought higher returns following bitcoin’s summer rally.
Corporate treasury adoption of Ethereum is rising, with major holders including Bitmine, SharpLink Gaming, Bit Digital, and BTCS collectively controlling 2.7 million ETH, valued at more than $12 billion. Digital asset treasuries, such as Michael Saylor’s Strategy, also continue expanding bitcoin and Ethereum holdings.
Market participants now focus on US employment data, with the nonfarm payroll report scheduled for Friday, which could influence the Fed’s decision at its September 16–17 meeting.
The CME Group’s FedWatch tool indicates a 97.6% probability of a 25-basis-point rate cut. Analysts caution that while corporate demand has supported Ethereum gains, the sustainability of such flows remains uncertain.
Ethereum’s recent surge highlights ongoing capital rotation in crypto markets, with investors increasingly diversifying into altcoins amid expectations of stable macroeconomic conditions.
