Since April, Ethereum's price has surged by 160%, making it one of the most discussed cryptocurrencies in the market. Recently, demand for Ethereum has significantly exceeded its supply.
Corporate Investments and Increasing Demand
Since mid-May, institutional investors and publicly traded companies have acquired 2.83 million Ethereum worth about 15 billion Australian dollars. This amount is 32 times greater than the 88,000 Ethereum produced in the same period. Spot Ethereum exchange-traded products have played a crucial role in these acquisitions, with purchase volumes exceeding 7.63 billion Australian dollars. Companies like Bitmine Immersion Technologies and SharpLink Gaming are also actively influencing price movements through their Ethereum acquisitions.
Ethereum-Bitcoin Comparison
Recently, Ethereum has shown superior performance compared to Bitcoin. The ETH/BTC ratio increased from 0.018 in mid-May to 0.031, indicating Ethereum's greater price appreciation relative to Bitcoin. Analysis by Bitwise suggests that institutional and corporate acquisitions of Ethereum are expected to reach 5.33 million in the next year, while the amount of new Ethereum entering the market is anticipated to be around 800,000.
Forecasts and Market Trends
The primary reason behind Ethereum's upward movement is attributed to the supply-demand imbalance. Matt Hougan, Bitwise CIO, emphasized in an interview that currently, demand is significantly higher than supply, which may lead to further price increases. Experts anticipate that demand for Ethereum will remain strong in the short and medium term, underscoring the importance of monitoring market dynamics for future investments.
In conclusion, the situation in the Ethereum market is driven by the demand surpassing supply, which supports price growth. The entrance of institutional investors is creating a positive momentum, making market observation crucial for evaluating future trends.
