Ethereum (ETH) has surpassed the $4,000 mark for the first time since March and is currently trading at $3,881.21. With a year-to-date gain of over 70%, Ethereum is solidifying its position as a major player in the cryptocurrency market. The surge in Ethereum's price is attributed to factors such as increased institutional interest, record ETF inflows, and network upgrades. In particular, U.S.-listed spot Ethereum ETFs, such as BlackRock's iShares Ethereum ETF and Fidelity's FETH ETF, have seen significant investment, with $500 million worth of Ether purchased this week. Ethereum's on-chain metrics demonstrate strong growth, especially on Layer 1, where daily transactions have increased from 5 million to 6.5-7.5 million. The recent Dencun upgrade has improved network efficiency and activity. However, the decrease in Layer 1 fees has affected Ethereum's burn rate, pushing the network towards an inflationary state. Nevertheless, Ethereum's issuance rate remains low, suggesting deflationary trends may resume. Ethereum's performance has exceeded that of Bitcoin, with growing preference for Ethereum in options markets. The accumulation of Ethereum by a wallet associated with Trump-backed World Liberty Financial further highlights institutional confidence in Ethereum. Based on various factors, including ETF inflows, on-chain activity, and institutional demand, analysts project Ethereum could reach $5,000-$5,200 by the end of 2024.



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