Institutional investment is reshaping the cryptocurrency landscape in 2025, with Ethereum emerging as a key player. As institutions increasingly prioritize established assets like Ethereum, smaller tokens face challenges maintaining their market presence. According to Kraken analysis, 55% of US crypto holders are actively tracking crypto markets compared to traditional markets, highlighting growing retail investor engagement alongside this shift. This institutional dominance, fueled by rising interest in stable and secure platforms like Ethereum, is driving market trends and potentially impacting the overall valuation as Bitcoin faces volatility and uncertainty due to trade tariffs.