“Ethereum’s price is nearing an all-time high due to significant capital influx from corporate and institutional investors.”
According to CoinMarketCap, Ethereum was trading at $4,601 on the morning of the 13th. This marks the first time in over four years, since November 2021, that Ethereum has surpassed the $4,600 mark, approaching its previous all-time high of $4,891.70 as recorded by CoinMarketCap.
The recent U.S. Consumer Price Index (CPI) for July aligned with market expectations, alleviating some concerns about liquidity reduction. This has fueled expectations that the Federal Reserve might lower interest rates in September.
Institutional and corporate interest in Ethereum is also steadily driving up its price. On August 11, Ethereum’s spot exchange-traded fund (ETF) saw an influx of $1.0188 billion in a single day. This amount is approximately six times greater than the $178.1 million that flowed into Bitcoin the same day. Even though $21.6 million were withdrawn from Bitcoin’s spot ETF, Ethereum saw a net influx of $58.5 million.
Given that Ethereum’s market capitalization is about one-fifth of Bitcoin’s, the inflow of similar funds exerts greater upward pressure on Ethereum’s price.
Bitmine Immersion Technologies (BMNR), the largest Ethereum holder worldwide, announced plans to raise an additional $20 billion on top of the $5 billion in Ethereum it already purchased. Meanwhile, unidentified large investors, or “whales,” have continued injecting personal funds, with one purchasing $1.34 billion worth of Ethereum over eight days.
As a result of this heightened interest, Ethereum’s price growth rate is outpacing other coins. Over the last week, Ethereum surged by 27.30%, compared to Bitcoin’s 5.26% and XRP’s 10.28%.
David Siemer, co-founder and CEO of Wave Financial, noted, “Among institutions and investors, Ethereum is increasingly being viewed not just as the ‘second largest cryptocurrency’ but as essential infrastructure for the DeFi, tokenization, and smart contract ecosystem.”