Ethereum is gaining bullish momentum due to a significant jump in its retail demand. Yesterday, the cryptocurrency became the first digital asset after Bitcoin to reach a market cap of $550 billion. ETH touched an all-time high of $4,643 on 2 November.
Additionally, Ethereum’s active addresses are rising. The recent data from crypto Analytics platform Santiment indicates a 45% spike in active ETH addresses during the last 28 days. While its demand is on the rise, the overall supply has decreased in recent weeks.
ETH exchange supply ratio is plunging. As a result, traders have limited opportunities to sell the world’s second most dominant crypto asset on digital exchanges. In addition, leading Ethereum holders preferred staking under ETH 2.0 contract over trading on digital exchanges in the first 10 months of 2021.
The deposit contract of Ethereum 2.0 now has more than 8.1 million staked ETH. The overall value of the deposited coins crossed $37 billion on 2 November, which is the highest level on record. At the launch of Beacon Chain in December 2020, ETH 2.0 deposit contract only had nearly 900,000 Ethereum coins.
Ethereum’s Price Action
In the last 7 days, the price of Ethereum has gained more than Bitcoin. ETH has jumped by nearly 10% within the last week, compared to a spike of approximately 4% in Bitcoin. “All-time highs just keep on coming for Ethereum, as the 2nd largest asset in the cryptocurrency market has eclipsed $4,643 for the first time in its 6-year history. The utility is a primary indication as to why, as active addresses are up 45% compared to 4 weeks ago,” Santiment mentioned.
Overall, the bullish momentum in the cryptocurrency market caused a major jump in demand for emerging altcoins. “The past 24 hours have seen a mild climb for Bitcoin and a new All-Time High for Ethereum. But, while crowd focus has been on the large caps, Arweave (AR ), Loopring (LRC) and Jasmy (JASMY) have enjoyed independent breakouts,” Santiment added.
