Ethereum Records Third-Strongest Third Quarter Performance in History

Ethereum achieved a 66.55% gain during the third quarter, representing the network's third-best performance for that period on record. This result surpassed the 59.5% return observed during the 2020 DeFi summer, while outperforming Bitcoin, which recorded a gain between 6% and 10% over the same timeframe.

The rally was supported by three primary factors. Spot Ethereum ETFs saw cumulative net inflows exceeding $10 billion, with nearly $4 billion recorded in August. Additionally, corporate treasury purchases of ETH surpassed $15 billion throughout the quarter. Finally, total value locked across Ethereum-related chains and Layer-2 networks reached approximately $88 billion by the end of the quarter.

During the quarter, the price of ETH traded above $4,000 and approached $5,000, though it did not reach a new all-time high. A 5.73% pullback occurred in September.

Analysts observed that the current cycle differs from previous bull runs, which were characterized by ICO activity, yield farming, and NFT speculation. The recent gains are attributed to institutional capital from wealth managers and allocators, as well as corporate treasury allocations with long-term horizons. The $88 billion in total value locked is described as comparable to the assets of a mid-tier US bank operating through smart contracts.