Originally published on: December 12, 2024
Ethereum’s price has been on a significant upswing, rising by 11.6% from December 10 to December 12 after a brief downturn. This surge was driven by increased investments in Ethereum spot exchange-traded funds (ETFs) and heightened activity on the Ethereum network, signaling renewed confidence among investors.
During the period from December 9 to December 11, Ethereum ETFs saw net inflows of $557 million, contributing to the rapid price recovery. Investors took advantage of the dip in prices at $3,550, betting on Ethereum’s continued dominance and the increasing adoption of decentralized applications (DApps).
The total value locked (TVL) in the Ethereum network skyrocketed to $78 billion on December 12, marking a 31% increase from the previous month. This growth was fueled by substantial deposits in protocols like AAVE, EigenLayer, Athena, Binance Staking, Spark, and Pendle. In comparison, competing blockchains like BNB Chain and Tron saw more modest increases in deposits.
Despite strong competition, Ethereum remains the clear leader in terms of total deposits. Its layer-2 scaling solutions alone hold $11 billion, underscoring its position as the frontrunner. Ethereum’s base layer transactions have average fees of $7.50, making it a cost-effective choice for users.
Ethereum’s seven-day onchain volumes surged by 21% on December 12, reaching $24.3 billion, showcasing robust network activity. While Solana leads in total onchain activity, Ethereum’s layer-2 blockchains collectively surpassed its volume. The ecosystem holds a 47% market share in DApp volumes, solidifying its position as a dominant player.
Bitwise, a prominent crypto ETF provider, set a target price of $7,000 for ETH, citing growing ETF adoption and prospects for expansion in Ethereum layer-2 blockchains. These developments are expected to drive further growth in the Ethereum ecosystem.
Recent moves in the market, such as World Liberty Financial’s significant Ether holdings and increasing institutional demand, suggest that Ethereum’s price may continue to climb. With a 65% increase in the past three months and strong support at $3,550, the odds are favorable for ETH to reach new highs in the near future.
While the future is uncertain, the current bullish momentum and positive market indicators point to a potential surge towards the $4,500 mark for Ethereum. Stay tuned for more updates on Ethereum’s price trajectory and market outlook.