July Highlights: Fueling Ethereum Growth, Record Mining Difficulty, and AI Innovations

In the latest digest, we examined the state of the market with an expert, assessed the potential for an altcoin season, and investigated the ongoing developments in the AI sector.

**Altseason: Beginning or Illusion?**

July marked a breakthrough month for alternative cryptocurrencies. Ethereum gained momentum, fueled by strong interest from institutional and corporate investors, and other assets also saw price increases.

This sparked debates within the community; some claimed a potential full-blown altseason was upon us, while others pointed to a short-lived euphoria and signs of overheating. We compiled key opinions and data to evaluate whether the market is truly entering a new growth phase.

**Analysts’ Insights**

At the beginning of the month, Santiment analysts, citing market data, announced the start of the altcoin season. At the time, Bitcoin surpassed the $118,000 mark, with most major digital assets outpacing the flagship in price dynamics.

Experts suggested that the altcoin season could continue as long as the first cryptocurrency remains above $110,000. They believe that in such an environment, traders feel comfortable reallocating profits from Bitcoin’s gains into other coins. However, there was also a note of caution—Santiment identified the MVRV metric for Bitcoin as a troubling sign, highlighting correction risks for altcoins. They noted a surge in social media mentions of Ethereum, which reached an “extreme euphoria” level, indicating potential pullbacks.

Moreover, the overly optimistic sentiment regarding Ethereum was regarded as suspicious, suggesting an impending short-term price peak.

Despite this, Ethereum, the second-largest cryptocurrency by market cap, along with certain altcoins, continued to show positive trends. For instance, the inflation data in the US led Ethereum and Solana to respond more strongly than Bitcoin: on the day the report was published, Bitcoin recorded a modest rise of just 2%, while its closest competitor surged by 7.9%.

Valentin Fournier, a leading analyst at BRN, observed an increased risk appetite among investors, with capital flowing into altcoins. He also saw demand for exchange-traded funds (ETFs) and interest from corporate players as key drivers. For example, SharpLink Gaming has become the largest public holder of ETH, surpassing the Ethereum Foundation.

The Altseason Index, tracking the performance of 75% of the top 50 cryptocurrencies by market cap, reached its highest level since February.

On July 15, technical analysis pro Peter Brandt discussed the start of the altcoin season, indicating a bullish «Cup and Handle» pattern on the charts, often signaling a continuation of upward trends post-consolidation.

However, not all experts share this outlook. An analyst using the pseudonym LordOfAlts believes that the alt season has not yet begun, as none of the 30 key bull market indicators have been triggered. They cite several factors supporting this perspective.

Simultaneously, Timo Oinonen, an on-chain analyst at CryptoQuant, called for a gradual fading of the notion of broad altcoin seasons. He predicts that investors will begin to act more selectively: instead of a massive rally across the market, only select «premium» altcoins with strong fundamentals will rise. Ethereum is likely to lead this list.

**Fueling the Fire for Ethereum**

Mid-summer proved to be fruitful for Ethereum, the second-largest cryptocurrency. On July 17, the asset’s price increased by 8.9% in a day, reaching its highest point since mid-January at $3452. This surge was driven by record monthly inflows into Ethereum ETFs, which attracted $2.27 billion.

As the asset continued its upward trajectory, demand for call options surged. According to Derive.xyz researcher Sean Dawson, market participants are «aggressively targeting a swift move to $4000.» Meanwhile, a CryptoQuant analyst, Crypto Dan, noted a premium that emerged on Coinbase, indicating a spike in purchases from American whales and institutional investors. They did not, however, observe any overheating but warned that such spikes in the latter half of the year could be a concerning sign.

Despite this, Ethereum’s price approached $4000 closely by July 28, further buoyed by institutional and corporate interest.

Over the month, ETH’s value increased by 50%, recovering by 150% from April’s lows (as of July 22, 2025). Bitwise’s Matt Hougan attributed this performance to a «demand shock,» while hinting at the possibility of further price increases.

Following Ethereum’s lead, the rest of the market responded positively.

**Who Thrives in the Top 10?**

On July 23, BNB’s price exceeded $804 (at the Binance exchange), setting a new seven-year record. Analysts noted two main factors contributing to this rally.

According to a Binance Research report, the five-week price appreciation was primarily driven by demand in the spot market. BNB outperformed traditional market indices and other large cryptocurrencies in terms of risk-return ratio.

On July 28, the asset shot past $850. In the rankings of the largest cryptocurrencies by market cap, BNB overtook Solana and secured the fifth position.

Solana also experienced a significant rally, with its prices nearing $200 on July 23, briefly surpassing this mark thanks to news regarding the purchase of 100,000 SOL by Upexi—a transaction that raised their reserves to 1,818,809 SOL (worth $331 million at that time). By July 28, the asset traded above $190, recording a monthly gain of 32.9%.

**A Look Ahead**

While July presented positive developments for various altcoins, a consensus on the arrival of an altseason remains elusive. Nevertheless, the month marked a potential starting point for many assets, and if this trend continues, August could prove pivotal in confirming a transition to a new phase in the cryptocurrency market.