Ethereum Eyes New Rally: Nomy Research Identifies AI Boom as Key Driver

Ethereum is once again capturing market attention as it shows clear signs of building momentum. According to the latest report by Nomy Research, one of the key long-term growth catalysts lies in the accelerating fusion of artificial intelligence with blockchain infrastructure. While the broader market remains focused on macro trends, forward-looking capital is beginning to reallocate based on technological convergence.

Nomy Research emphasizes that Ethereum is positioned to serve as the base layer for AI native applications, citing its high composability, EVM standardization, and expanding Layer 2 ecosystem. With over $90 billion in total value locked (TVL) across Ethereum protocols as of late July, accounting for nearly 60% of the global DeFi market, alongside hundreds of thousands of smart contracts deployed, the network's maturity offers a clear edge in enabling AI use cases such as decentralized data processing, autonomous agent coordination, and incentivized compute markets.

The report outlines several AI relevant frameworks already emerging within Ethereum, including decentralized GPU marketplaces, on-chain model inference protocols, and prediction economies. Nomy Research estimates that the combined market cap of AI linked Ethereum projects has risen steadily in recent months, outpacing legacy NFT and meme token verticals.

A Changing Market Narrative

"The convergence of AI and Ethereum is not just technological, it's strategic," says Mackenzie Blaeser, researcher at Nomy. "Institutional allocators are no longer asking if they should enter, but how to position early across multiple layers of the ecosystem."

The latest analysis from Nomy Research arrives as Ethereum continues to trail behind Bitcoin in market performance. While BTC consolidates near the $117,000–$118,000 mark, ETH has rebounded above $3,700 — currently trading around $3,795 — reflecting a recovery driven by strong on-chain activity and renewed capital in. Nomy analysts interpret this divergence as a sign of capital rotation, with institutional investors reassessing long-term strategies.

Meanwhile, staking continues to play a major role. Roughly 29% of ETH’s total supply is now staked, representing over 36 million ETH as of late July 2025, and the number of new validators continues to grow steadily. Ethereum linked exchange traded products (ETPs) recorded global net inflows exceeding $4 billion in July alone, including a record-setting $1.6 billion in a single week, reversing the trend of outflows seen in the second quarter. Several large asset managers in the EU have updated allocation strategies to include Ethereum as part of broader thematic exposure to AI and Web3 infrastructure.

At the same time, altcoin markets are adjusting to shifting narratives. Nomy Research believes this trend could accelerate further as jurisdictions like Hong Kong, Singapore, and Germany move toward clearer digital asset regulation frameworks.

This environment creates both opportunities and risks for altcoin investors. While the AI driven narrative may bring capital to tokens beyond ETH, volatility remains elevated. To help navigate this, Nomy Finance offers staking strategies not only for Ethereum but also for multiple altcoins such as SOL, AVAX, and XRP. These options include built in capital protection tools that help users mitigate the impact of sudden market drawdowns.

Realignment in DeFi

With the AI narrative driving renewed institutional interest in Ethereum, decentralized finance protocols are also gaining traction. Nomy Research highlights increased capital flows into flagship protocols like Aave, MakerDAO, and Lido, alongside newer platforms focused on AI centric functions such as compute delegation and liquidity routing.

Although projects such as Gensyn, Bittensor, and Render Network are drawing early interest, Nomy notes that their institutional adoption remains nascent. Ethereum's infrastructure provides the critical backbone these protocols rely on, offering credible paths for integration with AI driven services in the medium term.

In this context, platforms like Nomy Finance are emerging as flexible tools for institutional capital management. While base ETH staking yields remain around 3 to 4 percent, enhanced strategies through algorithmic compounding, diversification, and tactical hedging can deliver higher adjusted returns for risk aware investors.

Looking Ahead

The rise of AI is reshaping global tech and capital markets. Ethereum may increasingly be viewed not as an altcoin, but as core infrastructure, much like cloud computing platforms during the Web2 era.

If this framing holds, early positioning may prove decisive. Institutional capital is already shifting, and platforms like Nomy Finance are becoming preferred gateways for building exposure to Ethereum’s evolving ecosystem.