Analysts from CryptoQuant predict that Ether (ETH) could reach $5,000 for the first time, citing investor demand, onchain metrics, and network activity. Ether spot ETFs have experienced a 13-day inflow streak, attracting nearly $2 billion in cumulative net inflows. Daily transactions on the Ethereum network have also increased, indicating higher network activity. Although the total supply of ETH has reached its highest level since April 2023, the amount burned via transaction fees has been growing, creating deflationary pressure. Increased network activity and demand for Ethereum's capabilities may lead to ETH retaking its all-time highs from 2021 and beyond. The recent surge in Ethereum's price has also increased the total value of assets locked within its ecosystem. Three key applications, Lido, Aave, and EigenLayer, manage the majority of these assets. Ether saw a return in bullish sentiment after Donald Trump's election win in the U.S. presidential elections, which renewed hopes for a DeFi bull run. The anticipation of regulatory easing on cryptocurrencies has increased demand for ETH and fueled the growth of major DeFi tokens.
- Content Editor ( coindesk.com )
- 2024-12-12
Ethereum’s Ether Headed to $5K as Activity, Institutional Demand Grows