Eric Conner, one of the former core developers of Ethereum, has presented an analysis highlighting three factors likely to contribute to the rise of this cryptocurrency.
Increasing Stablecoin Volume
Conner noted that stablecoin transfer volume has been increasing for 21 consecutive months, with monthly transfer volume now rivaling that of Visa transactions. This creates sustained demand for Ethereum block space, forming an 'on-chain cash engine' for ETH.
Investments in Ethereum ETFs
In June, there was a total net inflow of $1.17 billion into spot Ethereum ETFs. Fund managers expect this figure to multiply several times in the second half of 2025, highlighting growing institutional investor interest in Ethereum.
Decreasing ETH Supply on Exchanges
According to Conner, the total ETH balance on centralized exchanges has decreased to just 9 million ETH, the lowest level since 2015. The decreasing supply serves as a factor supporting upward price pressure.
Conner stated that despite Ethereum trading sideways in the $2,400-$2,600 range, periods of low volatility tend to result in sudden and sharp movements. A decisive break through the $2,600 resistance could lead to a rapid and violent price increase.
