Ethereum price continued its strong surge this week, reaching a high of $4,747, a few points below its all-time high of $4,865. ETH has jumped by over 240% from its lowest level in April this year. This article explains the key reasons why ETH price is surging.
Ethereum price jumps as ETF inflows jump
ETH price has jumped sharply this week as data shows that spot ETH ETFs are adding vast sums of money. According to SoSoValue data, these funds have added inflows in the last five consecutive months.
They added $729 million in assets on Wednesday, bringing the cumulative inflows since their inception to $12 billion. Before that, these funds had added $523 million on Tuesday and $1 billion a day earlier.
The iShares Ethereum Trust (ETHA) now holds over $15 billion, while Grayscale’s ETHE and Fidelity’s FETH have $5.3 billion and $3.95 billion, respectively. These funds now have over $29.7 billion, equivalent to 5.22% of its market capitalization.
Ethereum treasuries demand
The other reason why Ethereum price is in a strong bull run is that more companies are accumulating it for their treasuries. Data shows that Tom Lee’s BitMine now holds ETH tokens worth close to $4 billion. The company is now in the process of raising $20 billion to accelerate its buying.
Similarly, ShapLink Gaming holds 598,000 coins worth over $2.8 billion and is also raising more money to boost its accumulation. Other top holders of ETH are The Ether Machine, which has holdings worth $1.63 billion, and Coinbase, with coins valued at over $670 million.
More companies will likely start accumulating ETH in the coming months as they did with Bitcoin. Today, there are over 100 Bitcoin treasury companies, including notable names such as Metaplanet, Microcloud Hologram, and XXIV.
Ethereum DEX growth
The other reason why Ethereum price is soaring is that its decentralized exchange (DEX) growth is accelerating. Data shows that DEX protocols in the network handled over $6.15 billion in assets in the last 24 hours, bringing the cumulative total in the last 30 days to nearly $120 billion.
These protocols have overtaken those of Solana and BNB Smart Chain (BSC). Solana’s DEX volume jumped to $4.30 billion in the last 24 hours and $113 billion in the last 30 days. BSC chain handled $2.16 billion and $63 billion, respectively.
DeFi growth is accelerating
Meanwhile, Ethereum’s role in the decentralized finance (DeFi) industry is growing. It has a total value locked (TVL) of over $216 billion and a bridged TVL of more than $550 billion.
Ethereum has some of the best-known players in the DeFi industry. Lido is the biggest liquid staking platform in the crypto industry with over $42 billion in assets, while AAVE is the largest lending protocol. EigenCloud has $22 billion, while EtherFi and Ethena have over $10 billion in assets.
Additionally, Ethereum is the biggest player in the stablecoin market with over $138 billion in assets.
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