In July 2023, Ethereum (ETH) demonstrated significant price growth, drawing attention from both investors and analysts.
Ethereum's Dramatic Price Increase
The price of Ethereum rose by around 56% for the month, reaching approximately $3,862 by July 22. This marks the first recorded increase of over 50% for a month since July 2022. Such price growth is being compared to the history of tech stocks from the 1990s.
Impact of ETFs on Ethereum's Price
The rally in July coincided with a record wave of ETF purchases based on Ethereum. Over 19 consecutive days, Ether-based ETFs attracted about $5.37 billion in new funds. The largest single inflow occurred on July 16, with nearly $727 million added to these funds. This led BlackRock’s iShares Ethereum ETF (ETHA) to surpass $10 billion in assets just 251 days post-launch.
Comparing Ethereum and Bitcoin
While Bitcoin's price saw only a 10-12% increase in July, Ethereum significantly outperformed this. Analysts note that ETH-based ETF inflows consistently exceeded those for Bitcoin over several days, indicating a shift in institutional focus towards Ethereum-based products.
The surge in Ethereum's price captures investor interest, despite a slowdown in network activity. Analysts highlight that the positive rally dynamics are driven by ETF demand, while fundamental metrics may not align with the current valuation.
