Ethereum News Today: Ethereum Surges 22.24% in Week, Reaches $3,669 on Institutional Demand

Ethereum, the second-largest cryptocurrency by market capitalization, has surged past the $3,650 mark, reaching a peak of $3,669. This significant rise has sparked excitement among traders, with many celebrating the token's resurgence. The surge comes as Ethereum approaches its 10-year anniversary in the crypto market, having increased by 22.24% in the past week and 43.9% in the past month. This is the first time since early January that Ethereum has reached this level, following a dip from a $4,000 high.

The rally is attributed to both retail and institutional demand. Data from the crypto exchange platform OKX shows a substantial increase in Ethereum inflows, with a net inflow of over $2.04 million in the past hour. More than 90% of these funds came from on-chain addresses, indicating active transfers to the platform, likely driven by positive market sentiment. Additionally, the cumulative net inflow for U.S.-listed ETH spot ETFs reached $7.09 billion as of July 17, with daily total net inflows hitting $602 million, just a day after reaching a record-high of $717 million. BlackRock’s ETHA leads with $546.7 million in inflows, followed by Fidelity and Grayscale with $17.19 million and $29.9 million respectively.

The institutional interest in Ethereum is not limited to ETFs. Bitmine Immersion, a crypto mining and ETH treasury firm, announced that its Ethereum holdings have surpassed $1 billion, more than tripling the $250 million raised in a private placement just a week earlier. This makes Bitmine Immersion's holdings worth more than the Ethereum Foundation's $665 million holdings by nearly $400 million.

The comparison of Ethereum to ‘digital oil’ has gained traction among crypto figureheads. Former Wall Street banker and Etherealize CEO Vivek Raman has started calling Ethereum “digital oil,” drawing a parallel to Bitcoin’s “digital gold” moniker. The analogy is based on the fact that Ethereum, like oil, powers transactions through the consumption of “gas” and its annual issuance is capped at about 1.5% per year, similar to how oil production responds to market demand.

As Ethereum continues to gain traction as an alternative asset for investors seeking to hedge against economic uncertainties, its status as ‘digital oil’ is likely to be further solidified. The recent surge in price and institutional demand suggests that Ethereum is poised for further growth, with traders and investors alike keeping a close eye on its performance in the coming days and weeks.