Cryptocurrencies have finally moved away from a niche existence in the investment universe. Bitcoin, ether and co. are increasingly found in the investment portfolios of both private and institutional investors. Milestones such as Bitcoin's breakthrough of the USD 100,000 mark or significant technological advances in Bitcoin competitors such as Ether or Solana are further consolidating the position of cryptocurrencies. Leveraged products from Vontobel are the ideal way for investors to position themselves in the dynamic crypto market.
Bitcoin - the leader
After a slow start to 2025, Bitcoin has once again moved into the fast lane and recaptured the 100,000 US dollar peak. Often referred to as "digital gold", the world's first cryptocurrency benefited in particular from strong purchases by institutional investors.
Despite macroeconomic uncertainties such as the US trade tariffs, Bitcoin continued its price rally in May 2025. The price reached a new all-time high of over USD 110,000 on May 22, 2025, the annually celebrated Bitcoin Pizza Day. The day marks a historic date in Bitcoin history and recalls the first Bitcoin payment for a physical good 15 years ago: software developer Laszlo Hanyecz paid 10,000 Bitcoins for the delivery of two Papa John's pizzas. At the time, one Bitcoin cost around 0.0041 US dollars - so the total value of this transaction was 41 US dollars.
The recent upswing was boosted by the prospect of an easing of US crypto regulation and rising capital inflows into exchange-traded Bitcoin products. One of the reasons for this was the planned reduction in regulatory hurdles for cryptocurrencies in the US. Donald Trump had already clearly positioned himself in favor of cryptocurrencies at his inauguration and announced his intention to establish the US as a crypto center. In addition, the first US states issued decrees in May regarding the creation of their own Bitcoin reserves (Axios, 22 May 2025), paving the way for further institutionalization.
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What next for Ether?
Ether, the cryptocurrency based on the Ethereum blockchain and the number 2 (by market capitalization) in the crypto market, also had a difficult time at the start of this year. The price of ether (measured against the US dollar) has fallen by around 20 percent since the start of the year (01/01/2025 to 27/05/2025). Although Ether has also started to recover, the second-largest cryptocurrency is struggling with problems of its own making. It may therefore be premature to speak of a long-term trend reversal.
From a technical perspective, the Ethereum blockchain has recently made progress. The Pectra update was only successfully implemented in May. The upgrade aims to make the network more efficient, user-friendly and scalable. The planned increase in the staking limit from 32 to 2048 Ethereum is particularly relevant for institutional investors: Staking costs will be reduced and staking will become much more convenient. Staking is a mechanism whereby users can block their cryptocurrencies for a certain period of time in order to support the blockchain infrastructure and benefit from a "staking reward" in return.
At the same time, the conversion of transactions to so-called layer 2 networks is progressing. Such alternatives reduce the load on the main chain, lower fees and enable better scaling. Although they make the Ethereum platform more attractive, they also jeopardize the economic basis of the network: the more activities are diverted from the main chain, the lower the income generated by fees in the core network. This circumstance can be reflected in falling revenues. Ethereum nevertheless remains the leading platform for decentralized programs and smart contracts. Top projects in the Web-3, NFT and DeFi sectors continue to rely on the stability and security of the Ethereum blockchain. If an economic balance can be established between the main and layer 2 networks, Ether could benefit in the long term despite structural challenges.
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Can Solana outstrip Ether?
Solana is a rather new star in the crypto sky. The Solana blockchain was launched by Solana Labs in 2020 and has since successfully established itself as an innovative alternative to existing blockchains. Solana's advantages: a higher number of transactions per second (TPS), lower transaction fees and a more developer-friendly platform.
Recently, a promising development has emerged: the possible integration with the WhatsApp short messaging service. By connecting to the Jupiter Exchange, currently the most widely used app on the Solana blockchain, cryptocurrency purchases could be made directly from a WhatsApp message in future. Users would not have to open a separate app for this. The Solana blockchain has decisive advantages: it is efficient and scalable even under high utilization, whereas the Ethereum blockchain causes transaction fees to rise with high volumes, for example.
Despite occasional overloads in times of high data traffic, technological improvements and planned layer 2 solutions will further improve scalability. Solana is aiming for a broad user base and is positioning itself as a cost-effective alternative to Ethereum. Political momentum, such as Donald Trump's announcement to work on a Solana-based US digital currency, and regulatory news could further increase the importance of this blockchain.
