The price of Ether, the cryptocurrency that powers the Ethereum blockchain, has broken past the $4,000 price level, reclaiming levels not seen since March of this year after the network saw lackluster performance and significant outflows to other networks.
The release of the Dencun upgrade in March dramatically lowered fees for Ethereum layer-2 scaling networks, causing Ethereum layer-1 revenues to collapse, which saw demand for the network plunge. According to data from Artemis, the network saw outflows of $11 billion over the past three months, coupled with inflows of $9.8 billion, leading to $1.2 billion in net outflows.
Source: Artemis
Activity on Ethereum has started growing over the last few months, bringing in renewed demand for the cryptocurrency which, coupled with significant inflows to spot Ether exchange-traded funds (ETFs) traded in the United States, helped the cryptocurrency’s price recover.
At the time of writing, Ether is trading at $4,085 after rising over 80% in the last year from around $2,350. The cryptocurrency’s price rose by 51% in the last month alone amid a wider cryptocurrency market rally.
Data from Farside Investors shows that spot Ether ETFs saw significant outflows from mid-November until November 22, when the trend reversed and these funds started seeing slight inflows. On November 29, these surged to $332.9 million, a record that was beaten on December 5 with $428.5 million inflows.
In November, as CryptoGlobe reported, inflows to spot Ether ETFs totaled 362,474 ETH tokens as inflows to these funds increased by 4,363% compared to the previous month, according to data from Lookonchain.
In total, spot Ether ETFs saw $1.32 billion inflows, showing that demand for the cryptocurrency among investors gaining exposure to it through regulated products has recently grown significantly.
Featured image via Unsplash.
