Ethereum Records $2.2 Billion Inflows, Can ETH Reach $10,000 Next?
Ethereum [ETH] has achieved a new milestone in terms of inflows, totaling $2.2 billion year-to-date, surpassing its previous record set in 2021.
The latest influx amounted to $634 million, signaling a considerable increase in investor confidence and overall market sentiment.
This surge can be primarily attributed to the strong performance of Ethereum ETFs, which have become a favored option for investors seeking exposure to ETH without directly investing in the digital currency.
The escalating institutional interest is quite apparent, with substantial funds continuously flowing into Ethereum-based investment products.
Despite some fluctuations and market volatility, the overall outlook for Ethereum remains optimistic, buoyed by the growing institutional support that lays a robust foundation for future expansion.
These developments coincide with a general uptick in inflows into crypto ETPs, with Ethereum leading alongside Bitcoin.
ETH Total Value Locked (TVL) and Spot ETF Inflows
In the recent week, Ethereum saw a significant influx of $4.81 billion, leading to a notable increase in its total value locked (TVL), as per Lookonchain’s report.
This surge has propelled Ethereum’s Layer-2 networks to new highs, with the combined TVL hitting a record of $51.5 billion—reflecting a 205% surge year-over-year.
Moreover, the TVL of Base surged by $302.02 million, showcasing heightened activity and scalability enhancements.
This record growth in DeFi TVL not only revisited the peaks of November 2021 but also diversified with the inclusion of more liquid staking options, Bitcoin DeFi integrations, and increased contributions from networks like Solana and other Layer-2 solutions.
Furthermore, Ethereum’s spot ETFs observed a significant net inflow of $24.23 million, marking six consecutive days of positive inflows.
Among the surge, BlackRock’s ETHA ETF witnessed a remarkable single-day inflow of $55.92 million, while Fidelity’s FETH ETF demonstrated a strong performance with a net inflow of $19.90 million.
Together, the cumulative net asset value of ETH spot ETFs has now reached $11.13 billion, indicating a growing and sustained interest in Ethereum as a notable digital asset.
Potential Price Movement Towards $10,000
These recent developments might propel ETH to new highs, with the 3-day timeframe chart showcasing a breakout from a consolidation triangle leading to a sharp surge.
Throughout 2021, ETH has maintained an overarching bullish trend, with intermittent periods of corrections and consolidation.
ETH seems poised to break out of a triangular pattern and aim for higher levels, setting its sights on reaching $10,000.
The upward trend, surpassing $3600, hints at Ethereum potentially hitting the $10,000 mark in the medium term if the chain activity continues to thrive.
This movement highlights strong buyer interest and positive market sentiment, possibly paving the way for a new phase of growth for Ethereum in the digital currency landscape.