ETH is experiencing its best-performing month since 2024, with a 50% monthly return.

In May 2025, BTC has a return of 15%, while ETH has a return of 51%, resulting in a return spread of 36%. As you can see, this has been a rare case after the launch of BTC and ETH ETFs. Since 2024, BTC has outperformed ETH 13 out of 17 times.

On a daily return basis, ETH has been underperforming BTC 50%+ on most month except May, where ETH has outperformed BTC in 55% of the days.

What has changed?
1. Clearer Direction for Ethereum:
- EF has been more involved in helping Builders, L2s, and institutions to onboard Ethereum, as well as the willingness to try out DeFi.
- Prioritizing scaling L1 such as raising the gas limit from 30M to 36M and soon 60M

2. Institutional Adoption

- ETH-BTC ETF ratio has a significant reversal in May
- SharpLink launching Strategic Ether Reserve

3. Shift in Narratives
While REV is very important, it is not the sole metrics that we should be focusing on. It is clear that Ethereum still has the lion share of liquidity, and being the most matured and decentralized L1.
4. Success of Pectra Upgrade
Pectra is one of the most complex upgrade in Ethereum history. While there has not been any big issues in the past, risk-adverse institutional investors tend to wait until the upgrade has been successfully executed.

There are surely more factors in play, but let's see if ETH can continue the momentum in the coming months!