Despite a growing supply and declining staking ratios, Ethereum maintains growth potential due to sustained demand and strategic investments.
Ethereum's Market Analysis
According to CryptoQuant, Ethereum is trading below its realized price, indicating it's undervalued. Long-term holders continue to accumulate despite market corrections, with major institutional purchases by entities like BlackRock stabilizing the market.
Exchange Reserves Decline
Santiment data reveals that Ethereum reserves on exchanges have reached their lowest since August 2024, indicating reduced selling pressure and investor confidence.
Reliance on Bitcoin and Investment Inflows
Analysts emphasize Bitcoin's stability is crucial for Ethereum's future. CoinShares reports that Ethereum outpaced Bitcoin in weekly inflows for the first time.
While Ethereum faces supply-side challenges, strong demand and large-scale investments highlight its long-term growth potential.
