Compilation: Vernacular Blockchain
Ethereum is once again stirring up excitement, but this time it is not in the slow and steady style of the past. What we are witnessing is a vertical surge in prices, billions of dollars flowing in, and a trend of the entire market leaning towards Ethereum.
If you're curious about why Ethereum suddenly surged, let's analyze the real reasons behind this rise and why the bulls may have just begun to gain momentum.
1. Spot Ethereum ETF demand surges
The net inflow of US spot ETFs last week reached $2.18 billion, setting a new record for weekly net inflows. This influx of funds is unstoppable, with various types of investors buying in, from retail investors to hedge funds and asset management companies.
More importantly, this has fundamentally changed the demand dynamics. These ETFs need to be backed by real Ethereum ( rather than paper derivatives ) to support their shares. This means that, in order to meet the demand, the market must continuously purchase Ethereum on the spot market.