Here’s Why Ethereum Will Benefit the Most As Genius ACT Bill Advances

Key Insights:

• Ethereum exchange supply drops to a record low of 4.9%, the lowest in over 10 years, reducing selling pressure.
• Over 1 million ETH have been withdrawn from exchanges in the past month as ETH gains 58% and surpasses $2,500.
• GENIUS Act mandates 1:1 stablecoin backing, boosting Ethereum’s DeFi and stablecoin dominance.

Ethereum (ETH) may be the biggest winner following the U.S. Senate’s advancement of the GENIUS Act. As stablecoin regulation moves closer to reality, Ethereum’s role as the leading blockchain for decentralized finance (DeFi) and stablecoin issuance positions it to benefit.

Its robust infrastructure, long-standing institutional trust, and the lowest exchange supply in a decade strengthen the case for continued growth and investor interest.

GENIUS Act Moves Forward With Strong Senate Support

On Monday night, the U.S. Senate passed a procedural vote to advance the GENIUS Act, a bill to regulate stablecoins. The vote passed with 66 senators in favor and 32 against. This shows strong bipartisan support despite initial political challenges and delays. The bill will now move to the House of Representatives for further review.

The GENIUS Act proposes clear guidelines for stablecoin issuers. It requires stablecoins to be backed 1:1 by U.S. dollar reserves. The bill also introduces federal oversight for issuers with more than $10 billion in circulation. These steps aim to protect users and bring regulatory clarity to stablecoin markets.

Senator Kirsten Gillibrand said the bill “will provide regulatory clarity… keep innovation on shore… and reaffirm the dominance of the U.S. dollar.” Democratic and Republican senators negotiated new amendments over the weekend to address ethical concerns and improve oversight. These changes helped gather more support for the bill from hesitant lawmakers.

Ethereum Positioned to Gain the Most from Stablecoin Regulation

Ethereum is the primary network for stablecoins, hosting major assets like USDC and DAI. The GENIUS Act supports 1:1 reserve requirements and regulatory clarity, which directly benefits ETH’s stablecoin ecosystem.

Developers and institutions may prefer Ethereum because of its maturity, decentralization, and broad adoption. Besides, Chris Burniske also predicted Ether to benefit most from the bill.

Ethereum also powers the largest share of DeFi projects. With billions in Total Value Locked (TVL), it leads the industry in decentralized applications and protocols. Regulatory clarity around stablecoins could drive more institutional funds to ETH-based DeFi services. This would increase network activity and further strengthen the crypto’s position.

The stablecoin regulation may also attract developers who want a compliant and scalable network. Ether’s established track record makes it a likely choice. Competing chains may struggle to match ETH’s depth in infrastructure and security, especially under stricter regulations.

Ethereum Exchange Supply Hits Lowest Level in 10 Years

Blockchain analytics firm Santiment reports that only 4.9% of ETH is currently held on centralized exchanges. This is the lowest level since Ethereum’s launch over a decade ago. The reduced supply on exchanges suggests fewer investors are looking to sell in the near term.

Over the past ten years, the exchange supply has dropped by 15.3 million ETH. This shift reflects a growing preference for holding ETH in private wallets or staking it on-chain. Lower exchange balances usually indicate long-term investor confidence and reduce short-term selling pressure.

Data from Glassnode also shows that nearly 1 million ETH have been withdrawn from exchanges in the last month alone. This coincides with ETH gaining over 58% during the same period, rising from under $1,700 to over $2,500. Market sentiment remains strong, supported by futures interest of over $31.2 billion.

ETH Rally Expected to Continue as Price Holds Key Support

Ethereum’s price is currently at $2,573, bouncing back after falling slightly under $2,400. Earlier this week, the price rose to a record $2,750. According to analysts, an increase of $3,000 or more could happen if ETH stays above $2,500. The structure of the network and the way investors behave help to bring about this view.

Crypto Patel noticed that a “Golden Cross” pattern is forming at the 12-hour level for ETH. The signal is considered positive when a short-term average moves above a long-term one. According to Patel, the current price could rise to $3,800–$5,000 for ETH soon.

There has been a 7% rise in open interest on the Ethereum futures market, indicating that traders are showing interest. During the last 24 hours, over $59.6 million in short liquidations occurred, contributing to the rising price. This demonstrates more faith in Ethereum’s strength in the near future.

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