news 
Ethereum Price Explodes 40% in July as ETF Inflows Hit Record $726M
July has been a remarkable month for the Ethereum market, with the price of ETH skyrocketing by an astonishing 40.4% since the beginning of the month. This unprecedented surge is largely attributed to record-breaking inflows into U.S. spot Ether ETFs. As of writing, Ethereum’s value has surpassed $3,300.
A significant portion of this explosive growth can be linked to the extraordinary inflow of funds into these ETFs, which reached a record high of $726.6 million on July 14th. This colossal influx of capital marks a turning point in the market, as institutional investors begin to take notice and actively contribute to the price action.
Data from Coinglass reveals that the top-performing Ethereum ETFs include BlackRock’s ETHA and Fidelity’s FETH, which have seen massive inflows of $499.2 million and $113.3 million, respectively. Other notable mentions include Grayscale ETHE and Grayscale ETH with inflows of $33 million and $54.2 million.
It is crucial to recognize that these ETFs have become the primary drivers of Ethereum’s price action due to their immense buying power. This unrelenting demand is putting immense pressure on the market, leading to a severe imbalance between supply and demand. As a result, institutional investors are now finding themselves unable to keep up with this relentless growth.
In contrast, Bitcoin’s (BTC) price has stagnated, registering only a minor 0.7% increase over the past day. This sudden loss of momentum could signal the start of an altcoin season, as capital is now flowing out of BTC and into other major altcoins like XRP, Solana, Dogecoin, and Cardano.
The Ethereum price rally has taken its toll on supply, with the current circulating supply (120.7M ETH) struggling to keep pace with the enormous demand fueled by ETF purchases. The staggering difference between supply and demand may lead to a potential supply crunch in the short term.
Ethereum’s daily trading volume is experiencing exponential growth as well, reaching an unprecedented level of over $2.4 billion today.
Source: coinpedia.org
