The cryptocurrency market experienced a significant surge over the weekend, with the second-largest digital asset, Ethereum (ETH), also known as Ether, leading the charge and outperforming its rivals, including Bitcoin.
The rally was fueled by increasing demand from institutional investors and corporate treasury buyers, according to Bloomberg.
Ether’s performance compared to Bitcoin
Ether’s price climbed as much as 2.9% on Monday morning in Asia, pushing its value above $4,300, its highest level since December 2021.
The top-performing cryptocurrency and Ether’s rival, Bitcoin, topped $121,000 to come within striking distance of a record high.
What’s causing the massive inflow?
A major driving factor for Ether’s recent gains is the growing interest from large-scale investors. Data compiled by Bloomberg indicates that more than $6.7 billion has poured into the nine US-listed exchanged-traded funds (ETFs) for Ether this year alone.
Additionally, the so-called digital-asset treasury companies, which are public entities that hold cryptocurrencies, have stockpiled around $13 billion of Ether so far, giving it a massive boost.
This strong inflow into Ether over Bitcoin points to a “massive positive sentiment shift” for the digital asset, said Sean McNulty, derivatives trading lead of APAC at digital-asset prime brokerage FalconX Ltd, told Bloomberg.
Market sentiment and outlook
The bullish sentiment surrounding Ether is reflected in the options markets. Data from Deribit shows an overall put-call ratio of 0.39, indicating that most traders are betting on a price jump.
The highest concentration of call options with a December 26 expiry is at $6,000, suggesting that many investors believe Ether has significant room to rise, Bloomberg reported.
Eric Trump, son of US President Donald Trump, publicly praised the Ether rally on X (formerly Twitter).
This comes as reports emerge of a Trump family-backed venture, World Liberty Financial (WLFI), planning to establish a public company that would hold its WLFI tokens.
Ether’s historical performance
Ether has experienced its most significant monthly return in three years, rising by as much as 56%.
This surge has been compared to the performance of ’90s tech stocks, driven by substantial inflows into ETFs, according to crypto-exchange platform Binance.
