Despite Ethereum's price being below its peaks, positive trends emerge from institutional investments and DeFi growth.
Institutional Investors Buying Ethereum
As of July 21, ETF inflows into Ethereum totaled $296.5 million, with significant contributions from companies like Franklin, Bitwise, and BlackRock. Over the past two weeks, total ETF allocations have reached $7.8 billion, indicating that big investors are not shying away from Ethereum, but rather actively investing in it.
Return of Ethereum's On-Chain Activity
Ethereum's daily transactions have hit a yearly high of 1.47 million based on the 7-day moving average. This marks the highest level of activity since last year, showcasing significant utilization of the network. Additionally, high-value transactions exceeding $100,000 accounted for $100 billion last week, suggesting movements by major institutional players.
DeFi Recovery and its Impact on Ethereum
The Total Value Locked (TVL) in Ethereum's DeFi has grown by 40.43% month-on-month, the highest growth compared to other blockchains. This growth indicates that more investors are trusting the Ethereum ecosystem for running financial applications. Coupled with a bullish sentiment in the crypto market, these factors could significantly boost Ethereum's price.
Considering the overall increase in institutional investment, rising on-chain activity, and DeFi recovery, Ethereum appears poised for a new price record. These factors create a robust foundation for potential price growth.
