ETH Rally Continues With $154M Inflows Boosting Confidence

• Ethereum surged 35.16% this week as ETF inflows hit $154.7M, boosting market optimism.
• Institutional demand drives Ethereum ETFs to record inflows since their launch in July.
• Emerging blockchains like Solana and Sui challenge Ethereum with lower fees and scalability.

Ethereum’s price experienced a notable rally despite recent market retracements, reaching $3,304 during press time. In the past 24 hours, ETH increased by 3.34%, and over the last week, by 35.16%. Trading volume also soared, up to $70.7 billion in 24 hours. 

The investors pumped $154.7 million into ETH ETFs last week, recording their highest level of inflows since the launch in July. It comes on the heels of an era where institutional investors have increasingly deployed their funds into Ethereum based on the currency’s recent run and utility in DeFi and TradFi alike.

Institutional Demand and ETF Growth

The rising demand for Ethereum-based ETFs indicates a shift in investor focus toward the network’s long-term growth potential. Last week’s inflows were bolstered by favorable market conditions and increased confidence in Ethereum’s ecosystem. Institutional participation, driven by expectations of regulatory clarity, has also played a significant role.

This trend highlights how Ethereum is becoming a popular altcoin as it marched up seven days straight. Watchers believe that if the momentum continues, Ethereum may ride the upward trend in the short run.

Potential Policy Shifts

The possibility of pro-crypto regulatory changes under the new U.S. administration is another factor driving optimism. Market veteran Raoul Pal recently suggested that a favorable policy environment could accelerate Ethereum’s growth. He emphasized the network’s dominance in the DeFi space, which could expand further with regulatory support.

Just thinking out loud…

I've been expecting $ETH to start gaining lost ground on BTC. It's partly driven by the risk taking cycle but it's also driven by the election

You see, now that regulation is likely to dramatically improve for crypto it allows two key potential…

— Raoul Pal (@RaoulGMI) November 8, 2024

Pal highlighted Ethereum’s potential to offer yield opportunities, positions it as a preferred choice for financial innovation. With its robust infrastructure, it is also remains a good choice for TradFi institutions that are looking to use blockchain.

Competitive Pressure from Emerging Blockchains

Ethereum is the frontrunner player but the performance of other players in this market could also impact its market dominance While Ethereum has strengths other projects like Solana and Sui are on the rise, owing to its lower fees and scalable options. Under reasonable conditions, the emerging blockchains may beat Ethereum. The dynamic shown here is a harbinger of the shifting terrain upon which Ethereum is called to function.

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