Ethereum overtakes Alibaba in market cap, bolstered by the crypto bull run and the US-China trade deal

Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalisation, has overtaken Chinese e-commerce giant Alibaba Group Holding Limited (BABA) to become the 32nd most valuable asset or company globally. Ethereum’s market cap currently stands at $306.68 billion, narrowly surpassing Alibaba’s $303.72 billion, according to various market data sources.

This development, part of an ongoing crypto bull run, follows Bitcoin’s recent overtake of Amazon to claim the fifth spot among global assets, highlighting the growing prominence of digital currencies. The recent U.S.-China trade agreement, announced today, is poised to further fuel this momentum by easing economic tensions and boosting risk-on assets like cryptocurrencies.

Ethereum’s ascent to surpass Alibaba, a leading global e-commerce and cloud computing company, reflects the broader momentum in the cryptocurrency market in 2025. The crypto bull run, fuelled by institutional adoption, regulatory clarity, and technological advancements, has propelled digital assets to new heights.

Ethereum, priced at about $2,514.25 per ETH, has surged 36% in the past week and 3% in the last 24 hours, per Coinbase data. Its market cap, derived from a circulating supply of 120.73 million ETH, has fluctuated but recently tipped above Alibaba’s valuation. Alibaba, with a market cap of $303.72 billion, has seen its stock rise 68% this year, driven by its AI and cloud computing advancements, according to TipRanks.

Analysts attribute the coin’s surge to several key factors. The approval of spot Ethereum exchange-traded funds (ETFs) in 2024 has driven significant institutional investment, with inflows into these ETFs reaching nearly $800 million by early 2025, according to Nasdaq. Research firm K33 Research predicts that $3.1 billion to $4.8 billion could flow into Ethereum ETFs by year-end, creating sustained buying pressure.

Additionally, Ethereum’s recent network upgrades, including the Pectra protocol and the anticipated “Surge” series, have enhanced its scalability and reduced transaction costs, making it more attractive for decentralised finance (DeFi) and non-fungible token (NFT) applications. “Ethereum’s DeFi capabilities helped it gain 80% of Bitcoin’s user base within just a year,” noted a leaked Standard Chartered report posted on X, highlighting the platform’s growing adoption.

Ethereum blossoms as US-China trade deal fuels crypto bull run

The crypto bull run has been fuelled by institutional adoption, regulatory clarity, and technological advancements, but the newly announced U.S.-China trade agreement adds a significant catalyst. Following two days of negotiations in Geneva, U.S. Treasury Secretary Scott Bessent reported “substantial progress” in trade talks.

“We’ve reached a 90-day pause on tariffs, with both sides reducing reciprocal tariffs by 115%,” he said.

U.S. Trade Representative Jamieson Greer suggested a deal was struck to address trade imbalances, potentially easing the 145% U.S. tariffs on Chinese goods and China’s 125% retaliatory tariffs. This development has sparked optimism in global markets, with S&P 500 futures rising 19 points, signalling cautious investor confidence.

For cryptocurrencies, the trade deal could reduce macroeconomic uncertainty, a key driver of volatility.

Industry experts are bullish on Ethereum’s future. Standard Chartered analysts predict ETH could reach $14,000 by the end of 2025, while CoinPedia forecasts a high of $5,925, driven by network growth and broader market recovery. VanEck projects Ethereum could hit $11,800 by 2030, citing its role as a “triple-point asset” encompassing capital, consumer, and store-of-value functions. These optimistic forecasts contrast with Alibaba’s more cautious outlook, as analysts on TipRanks project a 33.35% upside for BABA stock, with an average price target of $167.13.

The crypto market’s broader context also plays a role. Bitcoin’s recent overtake of Amazon, with a market cap exceeding $2 trillion, has set the stage for altcoins like Ethereum to shine. Posts on X suggest an “altcoin season” may be underway, with Ethereum’s 9% dominance in the total crypto market cap signalling its pivotal role.

However, competition from other smart contract platforms like Solana, which recently surpassed Ethereum in staking market cap, poses challenges. Solana’s $53.15 billion staking cap, driven by a 64.86% staking ratio, has sparked debates about its security compared to Ethereum’s more robust slashing mechanisms.

Ethereum’s flip of Alibaba is not just a financial milestone but a cultural one, symbolising the growing acceptance of decentralised technologies. As @TNNetworkHQ posted on X, “Could this signal a new dawn for cryptocurrencies?” The question resonates, as Ethereum’s 1.2 million validators and its dominance in DeFi and NFTs position it as a cornerstone of Web3. Meanwhile, Alibaba remains a powerhouse, with its cloud infrastructure and AI advancements, such as the Qwen 3 model, keeping it competitive.

As the crypto bull run continues, the U.S.-China trade deal could amplify Ethereum’s momentum by stabilising markets and encouraging investment in risk assets. Yet, Ethereum’s ability to maintain its edge over Alibaba will hinge on sustained market dynamics, regulatory developments, and technological progress, marking a pivotal moment for blockchain’s role in global finance.