Author: Nancy Lubale, CoinTelegraph; Translated by: Tao Zhu, Jinse Finance
With Donald Trump winning the presidential election, interest in a cryptocurrency-friendly business environment in the US has surged, leading Ethereum's price to rise over 37% in the past seven days, reaching its highest level since July 24.
ETH/USD daily chart. Source: TradingView
At the time of writing, Ethereum was trading at $3,392, with increasing demand through the spot Ethereum ETF and on-chain indicators suggesting that the altcoin's upward trend remains intact.
Ethereum open interest hits an all-time high
Before Ethereum's rise in the past seven days, there was an increase in long positions in the futures market for ETH. On-chain market intelligence firm CryptoQuant data shows that the total open interest for Ethereum in the derivatives market rose from 9.8 million ETH on November 5 to a record high of 13.2 million ETH on November 11.
All exchanges' ETH open interest. Source: CryptoQuant
"ETH has finally set a historic high in futures OI, indicating that interest in the altcoin leader has returned," trader Alan stated in a post on X, adding that the market can never overlook ETH.
Trader Olek believes that the continuous rise in Ether's OI indicates "increasing liquidity and market participation."
Olek added:
"Ethereum is signaling a recovery, with the increase in its activity indicating that the market is ready for action."
Increased demand for ETH
CryptoQuant data shows that with the increase in on-chain activity, demand for ETH seems to be gaining attention again, as evidenced by the number of daily active addresses (DAA) on the Ethereum blockchain. The chart below shows that Ethereum's DAA increased from 306,751 on November 5 to 388,350 at the time of writing on November 12. This number grew by 26% after Donald Trump won the 2024 US presidential election last week.
Number of active addresses on Ethereum. Source: CryptoQuant
Thus, on-chain data shows that users are increasingly interacting with Layer 1 blockchain, indicating that Ethereum's transaction volume has increased.
According to DappRadar data, active addresses for Ethereum DApps increased by 8% over the past seven days. Overall, considering other DeFi metrics (such as total value locked, transaction volume, and NFT trading volume) that also saw significant growth over the past week, this data is encouraging.
Top Layer 1 blockchain; 7-day DApp activity. Source: DappRadar
The network growth of Ethereum needs to continue, which will generate the demand necessary to push ETH up to $4,000.
US spot Ethereum ETF inflows reached $295 million
After Trump's victory, Ethereum began to recover, with positive cash flow for the spot ETH ETF, which saw a net outflow of $73 million in the last two days before the November 5 election.
According to SoSoValue data, these investment products recorded their largest single-day inflow of over $295 million on November 11 since their launch on July 23.
Ethereum ETF spot liquidity. Source: SoSoValue
Fidelity Ethereum Fund (FETH) leads with a record inflow of $115.5 million, while BlackRock's iShares Ethereum Trust ETF (ETHA) ranks second with an inflow of $101 million.
Grayscale Ethereum Mini Trust ETF (ETH) ranked third with an inflow of $63.3 million, while Bitwise Ethereum ETF (ETHW) recorded $15.6 million. All other US spot Ethereum ETFs had inflows of zero.
Additional data from CoinShares shows that for the week ending November 8, total inflows for Ethereum investment products reached $157 million, bringing this year's inflows to $915 million, with assets under management totaling $12 billion.
CoinShares commented that this is "the largest inflow since the ETF launch in July this year, marking a significant improvement in market sentiment."
The latest inflows continue a significant trend that began a week ago, indicating that institutional demand for Ethereum investment products is steadily increasing, potentially driving its price above the March 12 high of $4,000.
