Two catalysts for Ethereum: The Glamsterdam upgrade and institutional demand are changing the game.
Despite the recent correction in ETH price, I see fundamental prerequisites for a dramatic reversal of the situation. Currently, the asset has two powerful catalysts capable not only of stopping the decline but also of initiating a new upward cycle. We are talking about a technical network upgrade and an unprecedented influx of institutional capital.
Glamsterdam Upgrade: Bringing Life Back to L1
The first and perhaps most significant catalyst is the upcoming Glamsterdam upgrade. This is not just another hard fork. Glamsterdam aims to radically increase the throughput of the Ethereum network's first layer (L1) and reduce transaction fees. In my analysis, this is a critically important step. High gas costs on L1 have long pushed large players toward L2 solutions, but now we may see the reverse process. The return of institutional settlements, real-world asset (RWA) operations, and large DeFi deals to the main network will lead to a significant increase in activity.
Increased on-chain activity directly impacts the ETH economy. A rise in the number of transactions means higher fees, increased coin burning volumes, and, consequently, the return of the narrative of a deflationary asset. This is exactly what is needed to restore market confidence and break the downward trend.
Institutional Influx: Staking ETFs and Tokenization
The second catalyst is the avalanche-like growth in institutional demand, which is forming through staking ETFs and tokenization. These instruments create a steady, long-term inflow of capital. Staking ETFs solve two problems at once: they give investors access to staking yields while simultaneously locking up a significant portion of the ETH supply on the market. This is a classic mechanism of reducing circulating supply amid rising demand.
The development of the RWA (Real World Assets) sector deserves special attention. According to my data, the total value locked in DeFi on Ethereum is about $39.6 billion, and the volume of stablecoins on the network exceeds $157 billion. Meanwhile, the active capitalization of RWAs has already reached ~$14.9 billion. These are not just numbers. The growth of RWAs creates demand for ETH in several roles at once: as fuel for transactions, as collateral, and as a yield-bearing reserve. BlackRock with the BUIDL fund, JPMorgan with a tokenized money market fund, PayPal with PYUSD, and Coinbase with Base — all of them are building their infrastructure on Ethereum. The logic is simple: if institutions use the network, they have a direct reason to own the asset that powers and monetizes that network.
My expert conclusion: The combination of a technical upgrade (Glamsterdam) and a fundamental shift toward institutional adoption creates a perfect storm for ETH. The $10,000 target, which today seems distant to many, could be achieved much faster than most expect. The market is restructuring for large players, and retail investors are just one element here. The key movement will be driven by institutional capital, and Ethereum is at the epicenter of this process.