Ethereum has broken through a key resistance level against Bitcoin, and Bitmine chairman Tom Lee says the move reflects a wider change taking shape across crypto markets. In his view, stronger stablecoin adoption, faster progress in asset tokenization, and a growing number of Ethereum-based platforms are helping tilt momentum toward Ether. He also pointed to lower energy costs and legislative progress in the US, especially the CLARITY Act, as factors improving the broader backdrop for digital assets.
Lee treats ETH/BTC as a gauge of market health
Lee places heavy emphasis on the ETH/BTC ratio as a signal of underlying market conditions. For him, the pair tracks not just capital rotation between the two largest crypto assets, but also how far the market is moving toward accepting Ether in a monetary role. He said the idea of “ETH as money” could become more prominent in the second half of 2026. Bitmine, where Lee serves as chairman, is known for combining market research with active investment strategies in crypto.
Spot Ether ETFs pulled in more than $128 million in July
Institutional flows have started to support that argument. Spot Ethereum ETFs recorded more than $128 million in net inflows in July, outpacing spot Bitcoin ETFs over the same period. That shift suggests institutions are steadily adding Ether exposure. Bitmine has also been expanding its ETH holdings through what Lee described as an intensive accumulation campaign, though he said that phase may be nearing its end.
The picture is not one-sided. Even with stronger attention on Ethereum, Bitcoin’s market dominance rose by 1.5 percentage points in July, bringing it close to the 60% mark. At the same time, ETH/BTC was still down 7.72% over the past three months, and physical Ether investment products had logged seven consecutive weeks of outflows into late June before recent signs of reversal appeared.
Robinhood Layer 2 adds transactional demand for ETH
Another driver behind Ethereum’s momentum is Robinhood’s new Layer 2 network. The blockchain is operated by Robinhood, uses ETH to pay transaction fees, and settles final transactions on the Ethereum mainnet. That setup ties network activity directly to demand for Ether at the usage level, not only in speculative trading.
On-chain data showed that the amount of ETH bridged to Robinhood’s network jumped tenfold in one week and passed $100 million for the first time. That points to a meaningful injection of liquidity into the new ecosystem. Lee called the initiative a breakthrough and said its transaction volume has already exceeded that of several established decentralized exchanges. He argued that institutional and on-chain demand behind the current move is stronger than what supported earlier rallies.
This rally is smaller than 2025, but participation looks deeper
The comparison with earlier cycles remains central to the debate. In Q3 2025, Ethereum gained 53% against Bitcoin before giving back about half of that advance. In Q3 2026, the move so far is closer to 5%. The scale is smaller, but the current setup appears to have firmer backing from institutional allocation and actual network use. Lee said that if the ETH/BTC breakout holds, it could open the door to a longer shift in market structure, with the result depending on whether network utilization and investor interest continue to hold up.