Ethereum Price has a strongest quarterly increase in four years

Ethereum closed in September with its most robust quarterly performance in more than four years, echoing explosive gains for the last time when its price violated the threshold of $ 4,000 at the start of 2021.

According to Coinglass data, the ETH joined 48.7% in July and 18.8% in August, before losing ground in September with a modest decline of 5%.

Even with this drop, the token ended the quarter up 66.6%, reaching a summit of $ 4,953.73 in August following a regular accumulation by business treasury bills and a renewed retail activity.

This momentum spread in October. Cryptoslate data show that Ethereum has climbed 4% this week to receive $ 4,300, a peak of several weeks, supported by a wider rally that raised Bitcoin and XRP.

What led the price of Ethereum prices in the third quarter?

The most important engine of the Ethereum gathering during the reference period was the crowd of institutional investors in digital assets.

This is highlighted by strong entrances to the nine Spot ETH products based in the United States between July and August, when they attracted a new capital of around $ 10 billion. During this period, the Etha de Blackrock vehicle crossed the threshold of $ 10 billion in management under management, making it the third ETF to reach the milestone in a year.

At the same time, companies’ treasury bills have greatly expanded their exhibition to ETH. During the quarter, Corporate ETH Holdings increased from around $ 2 billion to more than $ 23 billion, making digital assets the treasury crypto with the fastest growth in industry.

Given these aggressive purchases from these institutional investors, Matt Hougan from Bitwise predicted in July that:

“ETPS and ETH cash companies (could buy) $ 20 billion in Eth in the next year, or 5.33 million ETH in today’s prices.”

Meanwhile, institutional flows were not the only engine of the strong ETH performance during the quarter.

In the third quarter, activity on the chain of Ethereum jumped, reflecting its central role in the DEFI sector.

Cryptoque analyst Darkfrost noted that the number of transactions, which has oscillated between 900,000 and 1.2 million a day in the past four years, have now broken out to record vertices from 1.6 to 1.7 million.

This growth closely follows the action of ETH prices, reinforcing the opinion that the activity of the network directly supports the evaluation.

Token Terminal Data paints a similar image by stressing that the applications built on Ethereum, such as stablescoins, Dex and active world, currently hold around 355 billion dollars in user assets. At the same time, ETH is negotiated at around 1.44 times the total value of the locked ecosystem (TVL).

According to the company, the market capitalization of tokenized assets on Ethereum systematically established a floor for the evaluation of the ETH.

Thus, like more assets, from stable to token treasures, enter the chain, ETH’s market capitalization increases in tandem. This relationship suggests that Ethereum’s growth is not only speculative but based on the expansion of utility on the chain.

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