Coinspeaker Ethereum Expected to Hit $5,000 Amid Rising Demand: CryptoQuant
Ethereum (ETH), the second-largest crypto by market capitalization, is gaining quite the momentum, and experts believe that a price surge above $5,000 is not unthinkable at this point.
According to a recent report from The Block, analytics firm CryptoQuant forecasts significant price appreciation for Ethereum based on three key factors: robust on-chain activity, surging institutional demand, and deflationary token dynamics. These market indicators, the report suggests, point toward sustained growth potential for ETH $3 939 24h volatility: 3.9% Market cap: $474.40 B Vol. 24h: $43.76 B .
Network Activity at Record Highs
Per CryptoQuant, Ethereum’s network has recorded an explosive growth in its activity through 2024. To put the above statement into perspective, daily transactions have now surged to between 6.5 to 7.5 million. That is, up from an average daily transaction of 5 million as of 2023.
Similarly, decentralized application (dApp) usage, measured by contract calls, has risen to 6 to 7 million daily. This increased activity has, in turn, driven higher transaction fees, resulting in more ETH being burned under Ethereum’s fee-burning mechanism.
This ultimately created a situation in September, where the burn rate started to exceed the issuance of new ETH. Therefore, creating deflationary pressure that limits supply growth.
According to CryptoQuant analysts, realized price bands are one key metric that they have used to project Ethereum’s future value. This metric currently shows the upper limit at $5,200 — a level that is similar to the peak level Ethereum attained in the 2021 bull run.
The analysts predict that as new investors enter at higher price points, this upper band will rise further, meaning that there will be even more room for an upward movement.
Institutional Interest Fuel Optimism
While on-chain metrics already give enough optimism for a potential ETH price surge, institutional interest in Ethereum is also stronger than ever.
Spot Ethereum exchange-traded funds (ETFs), including those from BlackRock and Fidelity, have seen record inflows. Over the past 13 days, ETH ETFs have recorded a streak of positive flows, accumulating nearly $2 billion during the period. This brings total assets to $13.18 billion.
The substantial surge in ETH ETF flows signals growing institutional confidence in Ethereum as a strategic investment vehicle. Giving more credence to this line of reasoning is the fact that the ETH/BTC ratio also continues to climb. The implication of this is that investors may be porting from Bitcoin to Ethereum as a preferred investment choice.
Ethereum (ETH) Price Surges
To further corroborate the above claims about Ethereum’s price performance, it has gained 4.69% in the past 24 hours. That is, as opposed to Bitcoin’s 1.40% rise, according to Coinspeaker’s market data.
This disparity, however, might be linked to increased trading volumes and renewed optimism within the broader crypto market.
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Ethereum Expected to Hit $5,000 Amid Rising Demand: CryptoQuant
