The crypto market has seen a dramatic shift in momentum over recent months, with Ethereum emerging as one of the strongest performers despite broader economic uncertainty. Since hitting lows in mid-June 2025, Ethereum (ETH) has surged over 100%, outpacing Bitcoin’s modest rebound of around 20%. This remarkable rally is largely driven by anticipation surrounding the Ethereum Merge, a historic network upgrade scheduled for mid-September 2025 that will transition the blockchain from Proof-of-Work (PoW) to Proof-of-Stake (PoS). However, while ETH soars, signs of weakness are emerging in the NFT sector—particularly in trading volume and blue-chip valuations.
Why Ethereum Is Outperforming Bitcoin
Ethereum's price surge reflects more than just market sentiment—it's a direct response to fundamental technological progress. Unlike Bitcoin, which remains anchored to its original PoW consensus mechanism, Ethereum is on the verge of a transformative upgrade. The Merge represents one of the most significant events in cryptocurrency history, often compared in importance only to Bitcoin’s creation.
👉 Discover how blockchain upgrades are reshaping digital asset values.
In a PoW system, miners compete to solve complex mathematical problems using high-powered hardware, consuming vast amounts of electricity in the process. This energy-intensive model has drawn increasing criticism amid growing global environmental concerns. In contrast, PoS eliminates mining altogether. Instead, validators "stake" their ETH to propose and attest to new blocks, with rewards distributed based on the amount staked and time online.
This shift is expected to reduce Ethereum’s energy consumption by more than 99%, aligning it with sustainability goals and potentially attracting institutional investors wary of ESG risks.
Environmental Impact and Market Sentiment Shift
Environmental, Social, and Governance (ESG) considerations have become central to investment decisions across asset classes. The crypto industry hasn’t been immune to this trend. When Tesla briefly accepted Bitcoin payments in early 2021 before reversing the decision due to energy concerns, it sent shockwaves through the market—highlighting how public perception can influence digital asset valuations.
With Ethereum moving to PoS, it positions itself as a greener alternative to Bitcoin, which continues to rely on PoW. Analysts at CryptoCompare note that this ecological advantage, combined with Ethereum’s utility in decentralized finance (DeFi) and NFT ecosystems, explains its superior performance relative to Bitcoin.
Antoni Trenchev, co-founder of Nexo, emphasized that the Merge has become a focal point for investor attention: “Ethereum’s upcoming upgrade isn’t just technical—it’s symbolic of evolution within the crypto space.”
Ethereum’s Utility Edge: More Than Just a Store of Value
One key differentiator between Ethereum and Bitcoin lies in functionality. While Bitcoin is often viewed as “digital gold”—a store of value—Ethereum serves as a foundational platform for decentralized applications (dApps), smart contracts, and non-fungible tokens (NFTs).
Celebrities like Jay Chou (Jay Zhou), Ed Sheeran, and other global influencers have launched NFT collections on the Ethereum blockchain, further cementing its role as the go-to network for digital collectibles. This real-world utility enhances demand for ETH, not only as an investment but also as a transactional currency within creative and tech-driven economies.
However, despite Ethereum’s rising price, there are growing concerns about the health of its NFT ecosystem.
NFT Market Cooling: OpenSea Volume Drops 93%
Data reveals a sharp contraction in NFT activity. OpenSea, the world’s largest NFT marketplace, reported just $354 million in trading volume in August 2025—a staggering 93% decline from its January peak of $4.85 billion. Monthly sales on Ethereum dropped to approximately 1 million NFTs in August, down over 40% from the January high of 2.28 million.
This sustained downturn suggests weakening retail participation and declining speculative interest, possibly exacerbated by the collapse of high-profile projects like LUNA and UST earlier in the year. Investor caution has taken hold, with many adopting a wait-and-see approach amid ongoing macroeconomic volatility.
Blue-Chip NFTs Under Pressure: CryptoPunks Overtake Bored Ape?
Even elite NFT collections are feeling the strain. For years, Bored Ape Yacht Club (BAYC) has dominated the blue-chip NFT space. But recent data shows CryptoPunks surpassing BAYC in floor price.
On August 21, 2025, CryptoPunks reached a floor price of 66.45 ETH, edging past BAYC’s 65.99 ETH. While some interpret this as a sign of rising Punk popularity, analysts suggest the shift may reflect BAYC’s depreciation rather than Punk strength.
Over the prior month:
- BAYC’s market cap fell 28%, with floor price down nearly 20%
- CryptoPunks’ market cap declined 16%, floor price down 15.83%
Still, CryptoPunks has shown resilience since June 2025, steadily climbing in value while BAYC fluctuates. If current trends continue, CryptoPunks could reclaim its status as the top-tier NFT collection.
👉 Explore how digital ownership is evolving in the Web3 era.
Key FAQs About Ethereum and the Merge
Q: What is the Ethereum Merge?
A: The Ethereum Merge refers to the network upgrade transitioning Ethereum from Proof-of-Work (PoW) to Proof-of-Stake (PoS), significantly reducing energy use and improving scalability.
Q: When is the Merge happening?
A: The Merge is scheduled for September 15, 2025. It marks a pivotal moment in blockchain history.
Q: Will Ethereum be more profitable to hold after the Merge?
A: Post-Merge, ETH holders can participate in staking to earn rewards—potentially increasing passive income opportunities.
Q: Does the Merge affect NFTs on Ethereum?
A: No—the transition won’t disrupt existing NFTs or smart contracts. However, lower transaction fees and faster processing may benefit future NFT activity.
Q: Is Ethereum replacing Bitcoin?
A: Not exactly. While Ethereum offers broader functionality, Bitcoin remains the leading store-of-value asset. Both serve different roles in the crypto ecosystem.
Q: Why are NFT volumes falling despite ETH’s price rise?
A: Market sentiment remains cautious post-LUNA crash. High inflation and rising interest rates have also reduced risk appetite among retail investors.
Looking Ahead: Opportunities Amid Volatility
Despite NFT slowdowns, Ethereum’s core fundamentals remain strong. Its shift to PoS enhances security, decentralization (in design), and environmental sustainability—all critical factors for long-term adoption.
Moreover, upcoming upgrades like sharding and EIP-4844 aim to further improve scalability and reduce gas fees, making Ethereum more accessible for everyday users and developers alike.
👉 Stay ahead of the next wave of blockchain innovation—see what’s next after the Merge.
While short-term indicators show divergence—strong ETH prices paired with weak NFT metrics—the long-term outlook favors platforms enabling real utility. As investor focus shifts from speculation to sustainable use cases, Ethereum is well-positioned to lead the next phase of Web3 growth.
Core Keywords: Ethereum Merge, Proof-of-Stake, NFT trading volume, OpenSea, Bored Ape Yacht Club, CryptoPunks, ETH price prediction, blockchain upgrade