Bernstein: The recent big pump of Ethereum is attributed to the rise of layer two networks and the increase in institutional adoption.

According to Deep Tide TechFlow news on May 15, as reported by Decrypt, analysts from investment firm Bernstein pointed out in their latest research report that the big pump in the price of Ethereum (ETH) over the past seven days was mainly benefited from the expansion of blockchain payment and stablecoin application scenarios, as well as the increased adoption rate of blockchain technology by institutions and retail investors.

The report shows that Ethereum is currently trading close to $2,600, with a weekly rise of 42%, significantly outperforming mainstream cryptocurrencies like Bitcoin. Analysts emphasize that the rising usage of stablecoins in cross-border payments and the possibility of brokers issuing tokenized stocks on Ethereum are factors that have shifted investors' perception of ETH.

In addition, Bernstein analysts stated that Layer-2 networks need to use ETH to pay for gas fees, a mechanism that helps to drive the distribution and demand for ETH.

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