Bernstein: The three main factors driving the rise of ETH are the stablecoin and tokenization boom, Layer 2 institutionalization, and the closing of ETH short positions.

According to Golden Finance, The Block reports that Ethereum has performed poorly overall in this cycle, but its price suddenly rose by 65% in the past 30 days, nearly doubling since the low point in April. Bernstein's analysts outlined three factors behind this pump: the surge in stablecoins and tokenization, institutional Layer 2, and the Close Position of ETH short positions. Analysts indicate that this cycle is expanding beyond value storage use cases, refocusing on the underlying blockchain, with Ethereum accounting for 51% of the total supply of stablecoins, becoming a key platform representative of this growth trend. Traditional financial giants like BlackRock and Franklin Templeton are also advancing the adoption of the real-world asset tokenization market, which is currently valued at over $22 billion, with Ethereum again holding a dominant position. Additionally, Ethereum Layer 2 is playing an increasingly important role in institutional crypto infrastructure. The third driving factor behind ETH's recent strong performance is more tactical. Over the past 12 to 18 months, cryptocurrency hedge funds have frequently used ETH as a delta-neutral hedging tool—going long on BTC and SOL while shorting ETH. However, they state that as the market narrative shifts towards institutional adoption of blockchain and stablecoin payments, as well as uses beyond its value storage function, the rationale for ETH's poor performance is becoming increasingly difficult to substantiate.