Ethereum

Flow

April

Spot

Daily

For the first time, Ethereum could reach $5,000 soon, thanks to rising investor demand, positive on-chain metrics, and increased network activity, as per the report.&nbsp;
Ether spot ETFs reached a 13-day inflow run, bringing their cumulative net flow to roughly $2 billion on Wednesday.&nbsp; The funds attracted their first billion dollars between July and early December, but SoSoValue data suggests that they just required five trading days to collect the next billion.
In addition, daily transactions on the Ethereum network have risen to around 6.5 million from 5.6 million in recent months. This is an increase in conjunction with 5 million daily transactions in 2023, indicating higher network activity.
Total supply of ETH reached 120 million, the highest since April 2023. However, the amount of ETH being burned (permanently removed from circulation) has been increasing since September.
Burns involve permanently removing tokens from circulation by sending them to a wallet no one controls. As network activity and demand increases, the burn rate goes up, slowing ETH supply growth and creating deflationary pressure.
Higher network traffic on Ethereum demonstrates the rising usage and demand for decentralized applications. Furthermore, it results in more ETH burnt through transaction fees, which can put deflationary pressure on the overall ETH supply because the burn rate might outstrip issuance during moments of heavy activity.
These factors are setting up Ether (ETH) to potentially reach new all-time highs, surpassing its 2021 peak. CryptoQuant believes that if current demand and supply trends continue, ETH could rise above $5,000.
They also noted that the current upper limit for ETH’s price, based on the average price at which holders bought their ETH, is around $5,200. This price point marked ETH’s peak in the 2021 bull run, but as new buyers enter the market, this upper price limit is expected to keep rising.
The recent rise in Ethereum’s price has dramatically brought up the total value of assets locked within its ecosystem, which reached $77 billion on Thursday, the biggest since January 2022.
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 Also Read: <a href="https://www.cryptotimes.io/2024/11/30/spot-eth-etfs-beat-btc-etfs-in-daily-net-flow-for-first-time/" target="_blank" rel="noopener noreferrer nofollow">Spot ETH ETFs Surpass BTC ETFs in Daily Net Flow for First Time</a>
</blockquote>

Ethereum Price Prediction to Reach a $5000 Target

The Crypto Times

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