Ethereum price has embarked on a strong bull run this month, continuing a trend that started a few months ago when it bottomed at $1,380. It jumped to a high of $3,856, and this trend may continue in the coming months. This article explores some of the top reasons why ETH price is going up.
Ethereum ETF inflows are soaring
The first main reason why Ethereum price has surged is that demand from Wall Street investors continues to jump this month. Spot ETH ETFs have had inflows in all days since July 3. They have had inflows in the last 13 weeks, and the trend is continuing.
Ethereum ETF inflows have jumped by over $830 million this week, bringing the cumulative inflows to over $7.89 billion. These funds now hold almost $20 billion in assets.
The ongoing surge in Ethereum ETF inflows means that Wall Street investors like banks, hedge funds, and pension companies are in an accumulation mode. This is notable since these investors remained in the sidelines for over a decade because of the blurry regulations.
BlackRock’s ETHA ETF has the biggest market share in the industry with over $4.2 billion in net assets. It is followed by Grayscale’s ETH and Fidelity’s FETH which have $2.4 billion and $2.36 billion, respectively.
Ethereum Treasury companies demand
The other top reason for the ongoing Ethereum price surge is that some companies have started to add it to their portfolios. For example, SharpLink Gaming is working to emulate Strategy, which has become the biggest Bitcoin holder in the crypto industry.
SharpLink now holds over 360,807 ETH tokens worth over $1 billion. Other companies that are now accumulating Ethereum tokens are Bit Digital, Bitmine Immersion, and Ether Machine. More companies will continue doing that.
At the same time, Ethereum is seeing more demand in the futures market as evidenced by the surging open interest, which rose to a record high this week. Its open interest jumped to a record high of over $57 billion on Tuesday, up from the year-to-date low of $17 billion.
The surging Ethereum demand happened at a time when the supply on exchanges has continued to plummet this month. There are now 16 million ETH tokens on exchanges, much lower than where they were earlier this year.
Falling exchange balances is a sign that investors are not selling their tokens, which is a highly bullish aspect.
Ethereum price jumped amid DeFi domination
Further, Ethereum continues to gain market share against other top layer-1 and layer-2 networks. For example, data shows that the total value locked in Ethereum’s DeFi ecosystem increased by 51% over the last 30 days to exceed $186 billion. The bridged TVL has surpassed $492 billion.
These numbers are much higher than other networks. For example, Solana has over $25.89 billion in assets, while BSC, Base, and Tron have $10.2 billion, $6.15 billion, and $5.8 billion, respectively.
The same trend is happening in other areas. For example, its stablecoin supply stands at over $130 billion, much higher than Tron’s $81.7 billion. Most of the other chains have less than $20 billion in stablecoin supply.
Ethereum will, therefore, benefit from the recently passed GENIUS Act, which regulates the stablecoin industry.
Itv is also a major player in the non-fungible token (NFT) and real-world asset (RWA) tokenization industries.
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