Ethereum Price Jumps 60% as Institutional Investors Add 800,000 ETH

Ethereum has seen a significant increase in institutional interest, with big investors adding over 800,000 ETH since April. This surge in investment is a clear indication of the growing confidence in Ethereum among large funds. The network's activity has also reached unprecedented levels, with over 2 million daily transactions, demonstrating its widespread use and utility.

The price of Ethereum has responded positively to the increased demand, jumping from $1,500 to $2,400. This price surge is directly linked to the inflows into Ethereum ETFs, which have been recording positive net flows for seven consecutive weeks. According to Glassnode data, institutional accumulation has accelerated, with a total of 106,000 ETH flowing into spot ETH ETFs last week alone. This inflow momentum follows a reversal from March to April, where early ETF flows showed heavy outflows, especially around March 10, with nearly 100,000 ETH exiting in a single week.

Despite the outflows totaling around 400,000 ETH during March, which coincided with a price slump from $2,100 to a low of $1,500, the trend reversed sharply by late April. ETF inflows began increasing and reached their highest point during the week of June 9, with nearly 200,000 ETH pouring into spot ETFs. Consequently, Ethereum prices surged alongside, rising to almost $2,400 by mid-June. This transition from bearish to bullish ETF flows highlights a change in institutional asset allocation, with net positive inflows exceeding 800,000 ETH since April. The continuous accumulation trend indicates sustained commitment from longer-term investors.

The strong link between ETF flows and market valuation is evident in Ethereum’s resilience in drawing capital even during corrections. This reflects the growing conviction among large players in the market. Additionally, Ethereum’s daily transactions have now exceeded 2 million, setting new records. Since 2016, Ethereum has seen a steady increase in network activity, with notable spikes in 2017 and 2021. However, the recent surge surpasses all historical highs, indicating explosive network growth. The 2024 uptick had the strongest rise in usage since the DeFi boom of 2020, with network congestion and elevated gas fees further showing intense demand. Moreover, consistent activity above 1 million daily transactions throughout bear markets highlights Ethereum’s utility dominance.

Ethereum ETFs have experienced a significant surge in inflows, coinciding with a record high in on-chain activity. This surge in inflows has been driven by a combination of factors, including increased staking and institutional interest. Ethereum-focused ETFs have seen seven consecutive weeks of inflows, with the latest week recording $283 million in net inflows. This trend indicates a strong bullish sentiment among investors, as active addresses on the Ethereum network have surpassed 356,000, and daily transaction volume has crossed 1.5 million. The rise in on-chain activity suggests that there is a growing interest in the Ethereum network, which is likely contributing to the surge in ETF inflows.

The surge in ETF inflows is also supported by the increasing engagement in decentralized finance (DeFi) on the Ethereum network. The network has seen strong DeFi engagement, with Ethereum's price surging past $2,700. This engagement is likely attracting more institutional investors, who are looking to capitalize on the growing DeFi ecosystem. The institutional inflows have surged by 160%, indicating a significant increase in institutional interest in Ethereum. The surge in ETF inflows and on-chain activity is a positive sign for the Ethereum network, as it indicates a growing interest and investment in the network. The increasing engagement in DeFi and the integration of Ethereum-based technologies by major platforms are likely to further drive the growth of the network. However, it is important to note that the surge in ETF inflows and on-chain activity is not without risks. The volatility of the cryptocurrency market and the regulatory environment are factors that could impact the growth of the Ethereum network. Despite these risks, the surge in ETF inflows and on-chain activity is a positive development for the Ethereum network, and it is likely to continue to attract more investors and users in the future.