Ethereum Soars Above $3,650 as Institutional Demand for Digital Oil Boosts Market Momentum
As Ethereum soars above $3,650 due to institutional demand for “digital oil,” traders celebrate.
As Ethereum recovers to the $3,650 mark and beyond, traders on X rejoice. Since ETH is compared to “digital oil,” the surge is thought to be driven by growing institutional demand.
According to data from crypto.news, the second-largest cryptocurrency by market capitalisation is flying well above $3,650 as of July 18 at roughly 6:30 AM UTC. It just missed the $3,800 mark, peaking at $3,669 instead. It is currently selling at $3,651 at the time of writing.
The token has increased by 7.79% in the last day and much more in the last month. The value of Ethereum has risen by 22.24% over the last seven days and 43.9% over the last month in the days preceding the 10-year anniversary of ETH 5.06%, the token’s introduction into the cryptocurrency market.
Given that this is the first time ETH has hit this level since early January, just after plunging from a peak of $4,000, traders on X have expressed fervent responses to Ethereum’s recent success in the cryptocurrency market.
At $3,600, $ETH woke up. One merchant on X said, “What a time to be alive.”
Where are the $SOL chads who claimed that Ethereum was extinct? Another bullish trader on X stated, “$ETH is heading towards $3,600 and this #bullrun it will definitely break $10K.”
“ETH is once again above $3,600. Another posted, “The Comeback is Real.”
Both the growing institutional demand from investors and the growing retail demand on-chain can be attributed to the value increase. The cryptocurrency trading platform has witnessed a sharp increase in Ethereum inflows, per data from OKX.
Ethereum inflow on OKX hit $3.8 million in the last hour, while outflows totalled $1.76 million, for a nett influx of more than $2.04 million.
Over 90% of the money originated from addresses on the blockchain. This indicates that people are actively moving ETH to the platform, which could be connected to the improving mood of the market.
Furthermore, according to data from SoSo Value, as of July 17, the total nett inflow for the ETH spot ETF listed in the United States had reached a high of $7.09 billion. Just one day after hitting a record-high of $717 million in daily total inflows, the daily nett inflow has now reached $602 million.
BlackRock’s ETHA, which has $546.7 million in documented inflows, is still at the forefront. Grayscale and Fidelity both make significant contributions, with inflows of $17.19 million and $29.9 million, respectively.
Is Ethereum the “digital oil” of the future?
Not just Bitcoin (btc 1.12%) has recently witnessed significant institutional activity. Ethereum is now a desirable asset for investors looking for an alternative asset to Bitcoin and stablecoins to protect them from the constantly changing economic landscape, as more and more businesses are boarding the crypto treasury bandwagon.
In fact, a number of prominent figures in the cryptocurrency space, such as Vivek Raman, the CEO of Etherealize and a former Wall Street banker, have begun referring to Ethereum as “digital oil,” a comparison that is similar to Bitcoin’s “digital gold” designation.
The analogy comes from the fact that ETH must use “gas” to power each transaction, just like oil powers transportation and machines. Furthermore, as ETH has limited annual issuance to roughly 1.5% annually, it is comparable to how oil output reacts to market demand.
The Ethereum holdings of Bitmine Immersion, a crypto mining and ETH treasury company run by Tom Lee, hit $1 billion earlier today. This is more than three times the $250 million the company raised in a private placement just one week prior.
As previously reported by crypto.news, BitMine now owns $1 billion worth of ETH, or 300,657 ETH, which is approximately $400 million more than the Ethereum Foundation’s $665 million holdings.
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