Ethereum, the world’s second-largest cryptocurrency by market cap reached a new all-time high today of more than $1,550. With demand continually rising for Ethereum. Grayscale revealed that it has added around 25,000 of ETH worth almost $38 million.
Grayscale now owns $4.5 billion worth of Ethereum after this latest purchase according to data from Bybt.com.
Ethereum’s new price highs can largely be attributed to new retail investors. New daily addresses for ETH also hit an all-time high on the charts. New investment inflows from retail buyers have picked up despite the rising gas fees. The ongoing rise in addresses is an extremely bullish sign for Ethereum overall.
This idea was further supported by the fact that invested fiat in Ethereum is at its youngest age since December of 2018. This data indicates that new investments are coming in while the older investments are being shuffled.
With the Mean Dollar Age dropping to such low levels. A number of analysts suggest that this metric falling during Ethereum’s bull run, has the potential to solidify the fundamentals of ETH even further.
Furthermore, according to on-chain data provider Glassnode, miners are also doing very well as gas fees rise. “A staggering $325 million in transaction fees were paid on Ethereum in January. Almost doubling the amount of its previous record month (September 2020). In comparison, Bitcoin January fees were $114 million (2.8x difference).”
Latest Grayscale Investment In ETH
As this is happening, institutions are closely eyeing ETH’s price. This latest Grayscale investment is proof that buying has already begun. With that coming just a week before ETH Futures is expected to launch on CME. The potential for short-term volatility rises as traders will now have the ability to enter short positions.
But the launch will also provide investors the ability to hedge against their spot positions making Ethereum even more of an attractive investment.
