As the crypto market continues to see a surge in large-cap altcoins, Ethereum (ETH) has once again taken the spotlight as the top-traded altcoin. With a market cap exceeding $401 billion and a daily trading volume of around $66.9 billion, Ethereum has experienced a remarkable 41 percent surge in the past eight days, reaching a trading price of $3,332 on Tuesday, November 12.
So, what is driving this impressive growth for Ethereum? Let’s take a closer look.
Ethereum’s Growth: The Bulls Are Back!
After a period of trailing behind Solana (SOL) in daily active addresses, Ethereum has seen a resurgence in bullish momentum. This surge in momentum can be attributed to the recent U.S. election results that favored pro-crypto leaders. Additionally, the Ethereum ecosystem, known for being the largest Web3 network, has also benefited from recent actions such as the Federal Reserve rate cut and a similar move by the Bank of England (BoE). These actions have instilled confidence in institutional investors, leading to Ethereum’s market growth.
Institutional Demand Boosts Ethereum’s Value
One of the key drivers behind Ethereum’s growth is the increasing demand from institutional investors. Ethereum’s stablecoin market cap has grown by over $9 billion in the last week, while the total value locked (TVL) on its network has surged from $45 billion to $61 billion. Notably, U.S. spot Ether ETFs, such as BlackRock’s ETHA, have attracted over $500 million in inflows in just four days, indicating strong institutional interest in Ethereum.
Midterm Targets Look Bullish
As Ethereum’s core developers convene with the community in Bangkok for the 2024 Devcon, the market sentiment has shifted towards optimism. The fear and greed index for Ethereum has soared to 81%, reflecting extreme greed and positivity among investors. From a technical analysis perspective, Ethereum’s price has reclaimed the 200 weekly Moving Average (MA) as a support level. If the current bullish trend persists, Ethereum is poised to reach $6k before the year ends.
With its market momentum solidifying, Ethereum continues to demonstrate why it remains a top choice for investors in the altcoin space. Whether it’s the growing institutional demand or the positive market sentiment, Ethereum is once again proving its resilience and strength in the crypto market.
