Ethereum is experiencing growing interest from institutional investors, contributing to its price increase and changing market trends.
Ethereum Price Growth and Institutional Investments
Currently, Ethereum is priced at $4,444, which is 0.50% higher in the last hour and 6% higher in the last week. However, there's been a 4% decrease in the past 24 hours. Institutional players have started actively acquiring Ethereum, creating a positive environment for growth. In less than two months, companies have purchased 1.5% of the total token supply, worth around $6 billion. Many of these tokens are used in DeFi and staking. Since the Merge, these players have absorbed all 2.4 million altcoins issued, creating a supply squeeze.
ETF Successes and Real Asset Tokenization
The ETF market is witnessing record inflows, with $2.85 billion reported in a single week, including a day where over $1 billion flowed in. This indicates high demand for Ethereum. Meanwhile, real-world asset tokenization is booming, with 58% of all tokenized assets residing on Ethereum Layer 1. Ethereum has become the primary center for the on-chain settlement of value.
Increased Activity and Support from GENIUS Act
The number of transactions on the Ethereum network has reached new all-time highs, with daily transactions at 1.73 million. Fees remain low even as activity rises. An anonymous user moved 92,899 ETH, indicating strong institutional demand. Recently, the U.S. Senate voted on the GENIUS Act, which allows banks and fintechs to issue fully-backed digital dollars. This may lead to a surge in stablecoin usage.
The institutional interest in Ethereum is continuing to grow, setting the stage for further price increases. Anticipation of new legislation and active asset tokenization supports bullish sentiments in the market.
