Ethereum Sees A Surge In Demand; Interest From Institutional Investors Surges
Ethereum was recently in the spotlight when it’s been said that the digital asset is poised for a major rally.
Not too long ago, crypto strategist Nicholas Merten named seven digital assets that he believes are in a great position to enter a new bull market cycle, and ETH was one of them.
Real-world use of ETH is rising
Spencer Noon, who is the head of crypto investment at DTC capital, said that the real-world use of ETH is surging.
He talked about the rising popularity of the stablecoins and the rise of DeFi as well and he said that these are the two key factors that are boosting the network and driving demand for ETH.
ETH miners have captured $3.5M in fees over the past 30 days. Below we can see that the demand for blockspace is mostly driven by stablecoins and #DeFi, which together account for >63% of fees paid. pic.twitter.com/6VKn3ATmSK
— Spencer Noon (@spencernoon) May 19, 2020
Number of daily transactions on the ETH network surges
The latest data coming from BitInfoCharts reveals that the number of daily transactions on the Ethereum network has soared in 2020, rising from 466,000 on January 1st to 855,000 on May 20th.
Another success worth mentioning is the fact that the institutional interest in ETH is also on the rise these days and Grayscale, crypto management giant, just reported a record $110 million in first-quarter inflows into its Grayscale Ethereum Trust.
Noon highlighted that ETH is definitely a target for the big players.
“Institutional investors are buying ETH. The cat is officially out of the bag. From the latest Grayscale report: [Grayscale] Ethereum Trust saw $110M in Q1 inflows,” he said and continued highlighting that this is more than all the previous inflows combines for the past two years.
In terms of pricing, ETH is trading in the green at the moment of writing this article, and the coin is priced at $210.22.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.