On Thursday, Ethereum recorded its second-highest daily buyup from long-term holders, with 298,000 ETH stacked. This demonstrates increased demand for the world’s second-largest cryptocurrency, despite a recent drop in price.
Ethereum Makes Historical Record
Julio Moreno, Head of Research at CryptoQuant highlighted that the last time Ethereum made such an outstanding record was on September 11, 2023. On this day, buyers scooped a whooping 317,000 ETH on exchanges.
Ethereum demand has spiked.
Buying by permanent holders was the second highest on record yesterday: 298K ETH.
The record daily buying was last September 11: 317K ETH. pic.twitter.com/0qMVpNU8ht
— Julio Moreno (@jjcmoreno) June 13, 2024
The spike in demand for Ethereum surprised many because it coincided with a notable drop in the price of the cryptocurrency. Within the past week, the price of ETH decreased by over 7%, aligning with a decline in the broader crypto market. Moreover, the trading volume decreased by 18.5% to $14 billion in the past 24 hours per data from CoinMarketCap.
Nevertheless, according to recent observations, Ethereum demonstrates strength in the on-chain metrics. This indicates the growing interest and confidence among long-term investors in the crypto market. As previously reported by Crypto Vanguard, the number of large investors (whales) holding 10,000 Ethereum has soared by 3% over the past 3 weeks.
Eyes Set on Ethereum ETF
Amid these developments, all eyes are set on what’s next on the potential launch of a spot Ethereum Exchange-Traded Fund (ETF). While the US Securities and Exchange Commission (SEC) approved eight issuers for spot ETH ETF last month, the regulator is yet to approve their S-1 filings.
Expectations are, however, high that this would happen soon. Nate Geraci, Co-founder of ETF Institute even anticipates the SEC’s comments this week. He added that issuers would need to file fresh amendments based on the feedback received.
Many market traders believe the launch of spot Ethereum ETF would be a game changer for Ethereum and investors. One compelling narrative surrounding the launch is its impact on investor confidence. Ethereum has already developed a strong market presence, and the launch of ETFs will provide a more organized investment vehicle.
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