Ethereum may be gearing up for a stronger run than Bitcoin in the coming months. Despite the choppy crypto market, some analysts see $ETH as the smarter play for investors and even for corporate treasuries. One of the most vocal voices on this topic is the account Milk Road, which recently shared a thread outlining why Ethereum currently has the edge over Bitcoin.
1. Ethereum Has a Thriving DeFi Ecosystem
Bitcoin may be the original cryptocurrency, but it still doesn’t have a real decentralized finance (DeFi) ecosystem built on its base layer. Ethereum, on the other hand, powers the majority of DeFi apps, stablecoins, and decentralized exchanges in the market.
This thriving ecosystem creates a powerful flywheel:
- More value locked in DeFi drives more activity on Ethereum
- More activity means higher demand for $ETH to pay gas fees
- Higher demand supports long-term market cap growth
Bitcoin’s treasury appeal has always been as “digital gold,” but it lacks the network effect that comes from real on-chain activity and utility.
3 reasons why $ETH > $BTC as a treasury asset:
– No real DeFi ecosystem on Bitcoin
– The GENIUS Act is a game-changer
– We’re still so early on $ETH adoptionLet’s break it down 👇
(a thread 🧵) https://t.co/Xmi3zY25TC
— Milk Road (@MilkRoadDaily) August 3, 2025
2. The GENIUS Act Could Supercharge Ethereum
The GENIUS Act, recently signed into law, is a major catalyst for stablecoins in the United States. It provides clear regulatory approval for compliant, fully backed stablecoins to operate in the U.S. financial system.
Why does this matter for Ethereum? Most stablecoins and the bulk of DeFi activity live on Ethereum. If U.S. adoption of stablecoins accelerates, it could drive more liquidity, more transactions, and ultimately, more demand for $ETH.
As Milk Road explained, “More stablecoins + more DeFi activity on Ethereum = long-term tailwinds for $ETH’s market cap.”
3. Ethereum Adoption Is Still Early
Perhaps the biggest reason for Ethereum’s upside is how under-owned it is by institutions and treasuries compared to Bitcoin.
- Public and private treasuries currently hold just $9.6 billion in ETH
- By comparison, over $110 billion in BTC sits in treasury holdings
This gap highlights the potential runway for Ethereum. If institutions begin to diversify into $ETH – especially with the rise of DeFi and U.S.-approved stablecoins – the capital rotation could hugely boost Ethereum’s market cap in the next bull cycle.
Read also: Cardano Founder Confident ADA Could Overtake Bitcoin: Here’s What It Would Take
Outlook for the Coming Months
The crypto market remains volatile, with Bitcoin dominance still high but slowly declining. Ethereum’s combination of real network utility, regulatory tailwinds from the GENIUS Act, and low institutional penetration makes it a strong candidate for outperformance.
For investors thinking about the next few months, Ethereum offers more upside potential than Bitcoin – especially if the market shifts toward DeFi, stablecoins, and utility-driven assets.
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