Ether, or ETH for short, is on the up and up, fueled by a comeback in interest around stablecoins and constantly buzzing about tokenization. Per Coin Metrics, Ether’s price was recently up 5% long-term. This boost indicates that investor sentiment is moving in the right direction. That increase is reflected in the performance of stocks with business models heavily correlated to the price of Ether.
Despite its recent momentum, Ether is still roughly 75% from its all-time high and down 24% for the year. Geopolitical tensions have played a significant role in the recent market volatility, leading to Ether’s volatility.
Ether ETFs have made a comeback this June, amid fears that they were turning into zombie funds. On Tuesday alone, combined these ETFs raked in $40 million in inflows, led by BlackRock’s iShares Ethereum Trust. Ever since the announcement of ETH ETFs, Ether has gone up over 1,000%.
Bit Digital left the bitcoin mining world entirely and announced plans to pursue Ether treasury and staking strategies. Due to this all-time high, the company saw its stock price soar by more than 6%. This is just one example of the increasing interest in Ether-related projects.
The current interest in Ether is tied to a wave of liquidity that has found its way into stablecoins and tokenization.
We're finally at the point where real use cases are emerging, and stablecoins have been the first version of that at scale but they're going to open the door to a much bigger story around tokenizing other assets and using digital assets in new ways." - Devin Ryan, head of financial technology research at Citizens.
Ether is closer to its 10-year birthday, from the end of July. The organic recent performance just might be a sign that the momentum is shifting as the cryptocurrency matures and finds new applications.
