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In summary
- Record inflows to Ethereum spot ETFs stood out, adding $1.2 billion in a single week.
- Ethereum’s on-chain activity grew to 7.5 million daily transactions, surpassing previous figures.
- Analysts projected that ETH could break its all-time high of $4,878 if institutional demand continued.
Ethereum (ETH) could soon surpass $5,000 per coin due to increased institutional demand, according to a new report, marking a record price for the second-largest Cryptocurrency by market capitalization.
And not only that, but on-chain activity is booming, according to market intelligence firm CryptoQuant. The firm said in a note on Thursday that inflows into new ETH exchange-traded funds (ETFs) had broken records.
Last week, investors pumped into Ethereum funds around the world with $1.2 billion in new cash—a record set just months after ETH spot funds began trading in the US.
“Based on valuation metrics, ETH could head above $5,000 if current supply-demand dynamics continue,” the report cited, adding that “renewed investor demand” was driving the run.
CryptoQuant also noted that the Blockchain was experiencing a lot of activity, with total daily transactions now between 6.5 and 7.5 million for most of the year. Last year, the figure stood at approximately 5 million per day.
“Increased network activity on Ethereum means an increase in usage and demand for network capabilities, reflecting the growing adoption of decentralized applications,” he said.
The Ethereum network is used by developers to build decentralized applications, such as decentralized cryptocurrency exchanges (DEX), which can be used to trade speculative assets such as memecoins, or transact stablecoins.
Both memecoins and stablecoins are seeing considerable traction since the crypto market began growing in market capitalization again this year.
Ethereum is now trading at $3,884 per coin, according to CoinGecko. Over the past 30 days, it is up almost 19%, and recently surpassed the $4,000 mark for the first time since March.
Despite the approval and subsequent trading of ETFs that give investors exposure to the asset, the currency, unlike Bitcoin, has struggled in attempting to mark a new all-time high. Its previous record of $4,878 was set in 2021.
Edited by Andrew Hayward
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