Ethereum Surges on ETF Inflows and DeFi Revival

Ether breaks new volume record

Under the catalysis of the overall market warming atmosphere, the trading activity of Ether (ETH) derivatives has experienced explosive growth. According to Coinglass data, the total trading volume of ETH derivatives recently surpassed 110 billion USD, which is not only rare this year but also exceeded Bitcoin’s (BTC) trading volume of approximately 84 billion USD during the same period, reflecting a clear tilt of market funds towards the Ethereum ecosystem.

(Source: coinglass)

Currently, the ETH price has reached around 2,780 USD, setting a new high since February of this year. This wave of increase is supported not only by technical factors but also driven by several positive factors, including stable net inflows of funds into the US spot Ether ETF, the continued vibrancy of the DeFi ecosystem, and the return of users to the OpenSea NFT market.

Institutional funds continue to increase.

According to SoSoValue data, since mid-May, the U.S. spot Ether ETF has seen net inflows of funds for 16 consecutive trading days, with a cumulative total approaching 890 million USD. This trend not only reflects institutional investors’ recognition of the future prospects of Ethereum but also provides strong support for the rise of ETH.

BTC Markets analyst Rachael Lucas stated: “This volatility is not a brief speculation, but rather a result of structural capital entering the market. Ethereum is gradually transforming from the second largest coin by market capitalization into the infrastructure of the digital asset world.”

Technology upgrades and inflation hedging

The Pectra upgrade launched this year further addresses the bottlenecks of Ethereum in scalability and fee efficiency, providing developers with better infrastructure support. Coupled with the burn mechanism introduced by EIP-1559, ETH has certain deflationary properties and is also regarded by some institutions as a component of inflation-resistant asset allocation.

Rachael Lucas estimates that if the “ETH ETF with staking support” is approved before the end of the year, the price of ETH has a chance to challenge the range of 5,500 to 6,700 USD. Looking ahead to 2030, driven by structural positives such as institutional adoption, increased Layer 2 penetration, and application growth, it is not far-fetched to expect ETH to reach 10,000 to 20,000 USD.

Be aware of short-term regulatory risks

Despite the bullish market sentiment, Kronos Research analyst Dominick John reminds that the SEC’s review progress on ETH staking ETFs remains uncertain, and the risk of short-term volatility should not be overlooked. He advises investors to closely monitor the relevant policy developments.

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Summary

The recent strong performance of Ethereum is undoubtedly the market focus, with explosive growth in the trading volume of its derivative products and new price highs reflecting the market’s high expectations for its future development. Coupled with the continuous inflow of institutional funds and the push of technological upgrades, this has laid a solid foundation for the long-term growth of Ethereum. Investors should remain cautious and closely monitor market dynamics.