ETH Price Surges Above $4,500 Amid Buying Spree

The price of ETH, the native cryptocurrency of the Ethereum blockchain, has reached its highest level of the year, trading over $4,500 at one point on Tuesday. According to The Block’s price page, ETH has increased approximately 4.85% for the day and about 40% since the beginning of the year. Previously, ETH peaked at $4,878.26 during the bull market in November 2021, spurred by the rise of DeFi applications and NFTs. Before this week, the token last exceeded $4,000 on December 16, 2024, peaking at $4,107. Currently, ETH is outperforming Bitcoin on a year-to-date basis, though Bitcoin's performance remains stronger over a full 12-month period. This price surge follows a growing trend of Ethereum treasury companies collecting over $9 billion in ETH in recent months. A report from Standard Chartered’s Geoffrey Kendrick labeled these treasury firms as “just getting started,” projecting they could increase their allocations to 10% of total ETH holdings over time. On Tuesday, BitMine announced plans to expand its equity program to a total of $24.5 billion for further ETH acquisitions. BitMine, the largest ETH treasury holder, currently possesses 1.15 million ETH valued at approximately $5 billion. Additionally, a significant rise in interest for spot Ethereum exchange-traded funds (ETFs) has been noted, with these funds accumulating around $5 billion in market cap over the last month. Since their launch in July 2024, net inflows have totaled $9.4 billion, and on Monday, they experienced over $1 billion in net inflows in a single day for the first time. Bitwise’s Chief Investment Officer, Matt Hougan, stated that these treasury firms and ETFs have sparked a “demand shock” for ETH, anticipating further increases in its price. It’s estimated that the funds and corporate treasuries have acquired 32 times more ETH than the network has minted since May. Disclaimer: The Block is an independent media outlet providing news, research, and data. As of November 2023, Foresight Ventures is a majority investor in The Block. The Block operates independently to offer objective and timely information about the crypto industry.