Ethereum fees just hit 7-year low as it finally outperforms Bitcoin – one hidden data point proves rally is sustainable

Ethereum is currently outperforming Bitcoin after the Federal Reserve delivered a long-anticipated quarter-point rate cut, signaling that the easing cycle remains intact. This rally is distinguished by its spot-driven nature, evidenced by subdued funding rates, suggesting institutional absorption rather than speculative leverage. Furthermore, large holders accumulated nearly $3.1 billion in ETH leading up to the decision, and $66.5 billion in stablecoin dry powder is poised for deployment. However, the rally occurs despite a fundamental contradiction: Ethereum's Layer-1 mainnet revenue has plummeted to its lowest level since 2017 following the Dencun upgrade, weakening the "ultrasound money" narrative. Investors appear to be valuing Ethereum as a growth-equity platform benefiting from L2 explosion and lower rates, rather than a yield-bearing asset. The Fed's gradual easing path projected for 2026 signals a 'Goldilocks' scenario where compressing real yields favor growth assets like ETH, causing the ETH/BTC ratio to rise and confirming the sustainability of the current rotation.

(Source：CryptoSlate)