Ethereum’s Rally Driven by Asian Traders
Ethereum, the second-largest cryptocurrency, has experienced a significant uptrend in the past week, closely following the overall market trend. While positive investor sentiment and favorable U.S. regulatory developments have played a role in this surge, recent data points to another key driver behind Ethereum’s momentum.
According to a report from Matrixport on July 16, a substantial portion of Ethereum’s recent gains can be attributed to traders based in Asia. Out of the 20% increase in Ethereum’s value over the past month, a significant 17% of that growth occurred during Asian trading hours.
The data indicates that the surge in Ethereum’s price is not primarily driven by the U.S. market, despite the recent positive trends and increased capital inflows. The demand for U.S.-listed spot exchange-traded funds and growing institutional interest have also contributed to Ethereum’s upward trajectory.
Several companies have disclosed significant investments in Ethereum recently, including iGaming firm SharpLink with a $213 million allocation, as well as Nasdaq-listed Bit Digital and mining firm Bitmine, which added nearly $500 million to their ETH holdings.
Ethereum’s Growing Demand in Asian Markets
Matrixport’s data suggests that Ethereum’s demand is rapidly increasing across Asian markets, further fueling the token’s momentum. SoSoValue data shows that Ethereum-tracking ETFs in Hong Kong surged by more than 5% in a single day.
Despite the strong price action, all funds traded at a discount to their net asset value (NAV), indicating lingering investor caution or potential regional price disparities.
Currently trading at slightly over $3,100, Ethereum has shown a strong recovery following a period of underperformance. With a 7% increase in value in the past day alone, Ethereum continues to outperform Bitcoin and much of the broader market. Optimism is mounting that Ethereum could sustain its upward trend and reach even higher levels.