Ethereum Price Performs Well as Demand for ETH ETFs Grows

Ethereum (ETH), the world’s largest altcoin, has once again made headlines with a 4% increase, outperforming the broader CoinDesk 20 (CD20) index. This recent surge comes amid growing interest in Ethereum Exchange Traded Funds (ETFs) following a challenging start.

Ethereum ETFs Attract Capital

According to data from SoSoValue, there was a significant net inflow into U.S. spot Ethereum ETFs on Monday, with a total of $4.93 million being drawn in. This influx reflects the increasing institutional interest in Ethereum, which is gaining popularity as a key asset in the crypto market. Notably, Fidelity’s FETH led the pack with an impressive inflow of $3.98 million.

Other Ethereum ETFs also showed positive numbers, with Franklin Templeton’s EZET raising $1 million and Bitwise’s ETHW collecting $2.86 million. However, not all funds saw gains. VanEck’s ETHV experienced an outflow of $2.92 million, marking a rare dip in what was otherwise a strong period for Ethereum ETFs.

In contrast, Bitcoin ETFs recorded a collective daily inflow of $27.87 million, underscoring Bitcoin’s continued dominance in the market. However, some Bitcoin-focused funds, such as Grayscale’s GBTC and Bitwise’s BITB, experienced outflows of $11.7 million and $17 million, respectively.

DEX Tokens on the Rise

The positive momentum in Ethereum’s price was bolstered by gains in several major decentralized exchange (DEX) tokens. Market data shows that Uniswap’s UNI rose by 3.8%, DYDX increased by 5.5%, and Gnosis’s GNO climbed by 5.3%. These tokens are integral to the DeFi ecosystem, with Ethereum serving as the primary blockchain.

Data from DeFiLlama indicates that Ethereum fees reached $40.46 million in the first half of August, while Uniswap fees during the same period amounted to $23.64 million. This suggests that Ethereum is on track to surpass the $47.4 million in fees collected in July, with the potential to challenge the total fees of $54 million recorded in June. The consistent fee generation on the Ethereum network underscores the ongoing demand for its services, even amid market volatility.

Adding to the bullish sentiment, an Ethereum whale who was liquidated for 2,890 wstETH ($8.06 million) during the market crash on August 5 has re-entered the market with a significant purchase. According to a post by Lookonchain on X, this whale has acquired 4,459 ETH, worth $11.8 million, since August 11.