Since the start of the year till now, Ethereum has traded in a spectacular manner breaking record highs after record highs while significantly outperforming Bitcoin and grabbing huge chunks of market dominance.
Over the past week alone, the second-largest cryptocurrency broke the $3,000 barrier, a significant milestone for the cryptocurrency. However, Ethereum has continued on its aggressive bullish campaign and has cleared the $4,000 level a few hours ago, peaking at $4,200. ETH is currently up by 490%, year-to-date.
The CEO of CryptoQuant, Ki-Young Ju, highlighted a “significant premium” on Coinbase, which he argues is likely the primary reason behind Ethereum’s recent surge.
Institutional investors, especially those based in the United States, are known for making their crypto purchases off Coinbase. The materialization of a high premium on the US-based crypto exchange compared to other exchanges highlights a “strong spot buying pressure” in the US trading platform.
That said, Ju asserted that US institutional investors are responsible for the parabolic rally seen in Ethereum recently. The CEO also advised that other investors follow the activities of these US investors instead of trading against them.
Meanwhile, on closer inspection, there appear to be other factors behind the price surge in the ETH. From the number of stablecoins being used to the countless DeFi and NFT projects operating on it, the Ethereum network is, without a doubt, the most utilized in the crypto industry.
Glassnode Reports on the Growing ETH Supply Drought
In other news, recent data from Glassnode suggests that the number of wallets with crypto assets has reached an all-time high of about 60 million.
The analytics company also highlighted the current supply dynamics as one of the key factors behind the surge. Glassnode revealed that only 12% of the total circulating supply of ETH is on exchanges, while the percentage of ETH used in smart contracts is about 23% of the total supply.
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