A recent analysis by QCP Capital suggests that Ethereum’s current streak of inflows into U.S.-listed spot ether exchange-traded funds (ETFs) could help the cryptocurrency surpass its three-year-old price record in the coming months. Strong net inflows and increased activity on the Ethereum blockchain, including a jump in revenue, fees, new wallets, and Ethereum blockchain volumes, indicate growing optimism towards Ethereum.
Ethereum ETF Inflows and Blockchain Activity Signal Potential for New Lifetime Highs
According to a recent analysis by QCP Capital, the current streak of inflows into U.S.-listed spot ether exchange-traded funds (ETFs) could help Ethereum surpass its three-year-old price record in the coming months.
Strong Net Inflows into ETH ETFs
The data shows that ETH spot ETFs have recorded strong net inflows totaling $90.1 million yesterday, marking a 4-day winning streak. This is aligned with QCP Capital’s thesis of capital rotation from Bitcoin (BTC) to Ethereum (ETH). The ether ETFs attracted over $220 million in the Nov. 22-27 period, which is the second-longest streak of inflows since they went live in July.
Increased Activity on the Ethereum Blockchain
In addition to the strong net inflows into ETH ETFs, other data shows a jump in revenue, fees, new wallets, and Ethereum blockchain volumes. The past month has registered elevated levels of activity compared with the period from May to September. This increased activity is further supported by stablecoin data, which shows that Ethereum has more USDT hosted than Tron for the first time since June 2022.
Record Cumulative Open Interest in Perpetual and Standard Futures Contracts
A CoinDesk analysis earlier this week noted that cumulative open interest in perpetual and standard futures contracts has surged to a record 6.32 million ETH, worth over $27 billion. This increase in open interest suggests growing optimism in the market for Ethereum.
Picking Up Activity in the Ether Options Market
Activity in the ether options market listed on Deribit is also picking up, with over 2 million contracts active or open at press time, which is the most since late June.
Conclusion
The combination of strong net inflows into ETH ETFs, increased activity on the Ethereum blockchain, and record cumulative open interest in perpetual and standard futures contracts suggests that Ethereum may be poised to surpass its three-year-old price record in the coming months.
Recent Developments and Market Trends
Strong Inflows and Rising Activity on Ethereum Blockchain
Growing Optimism and Capital Rotation
These healthy inflows highlight the market’s growing optimism towards Ethereum. QCP Capital noted that despite this week’s retracement, the strong inflows support their thesis of capital rotation from Bitcoin (BTC) to ETH.
Analysts’ Predictions
Traders say that these developments set up ETH for new lifetime highs. QCP said, “Given that ETH has lagged behind BTC and SOL in the current rally, its recent strength supports the case for it to retest its all-time high of 4,868 (+35.4%).”
Market Metrics and Data
The recent inflows and rising activity on Ethereum’s blockchain suggest that the cryptocurrency may be poised for new lifetime highs. However, it is essential to note that market trends can change rapidly, and investors should remain cautious when making investment decisions.
