ETH Set for Liftoff: Liquidity Builds Ahead of GENIUS Act Vote

  • Stablecoin supply hits $131.88B, signaling capital buildup on Ethereum.
  • Institutional ETH options volume surges 96%, showing renewed confidence.

Ethereum remains 39% below its all-time high, but recent developments may suggest a potential rally is forming. According to Artemis, Ethereum’s stablecoin supply has climbed to $131.88 billion, marking a significant increase in on-chain liquidity. 

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Source: Artemis

Pillows has linked the rise to speculation around the GENIUS Act, which some believe could drive trillions of dollars in stablecoins onto Ethereum.

Despite the increase in supply, stablecoin transfer volume has dropped to $35 billion. This indicates that capital is accumulating but has not yet been actively deployed. 

Historically, similar patterns have preceded sharp increases in Ethereum’s network activity and price. While 2025 has yet to see such a breakout, this capital buildup may signal an impending move.

Institutional Derivatives Activity Hits Record Levels

Ethereum’s derivatives market is surging. CoinGlass reports that ETH Options Volume rose 96.74% to $2.26 billion. Options Open Interest also increased by 9.04%, reaching $9.88 billion, while total Open Interest edged up to $43.59 billion.

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Source: Coinglass

 The surge comes despite ongoing regulatory uncertainty, signaling strong long-term conviction. Analysts view this as a precursor to major market shifts.

GENIUS Act Fuels Regulatory Optimism

The GENIUS Act is gaining attention as a potential turning point for Ethereum adoption. According to Pillows, the bill could allow direct engagement between Ethereum and large U.S. banks. This would represent a major step toward institutional integration.

The Act also aims to resolve jurisdictional disputes between the SEC and CFTC. Legal cases like Ripple vs. SEC have highlighted the uncertainty surrounding crypto regulation. If passed, the GENIUS Act could provide clear legal guidance, inviting institutional capital back into the ecosystem.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.

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