Ethereum Climbs Past $4,700 as Treasury Firms and ETFs Spark Record Demand

Ethereum’s native token, ETH, is trading at its highest level of the year, briefly surpassing $4,700 on Tuesday after gaining nearly 9.53% in the past 24 hours and around 40% since January. The second-largest cryptocurrency last crossed the $4,000 mark on Dec. 16, 2024, peaking at $4,107. Its all-time high remains $4,878.26, set in November 2021 during the pandemic-era bull run driven by the rise of DeFi, NFTs, and blockchain-based organizations.

ETH’s recent momentum has outpaced Bitcoin’s year-to-date growth, supported by a surge in Ethereum-focused treasury companies. These firms have collectively amassed billions of dollars in ETH, with analysts predicting their holdings could eventually reach 10% of the total supply. Leading the charge, BitMine — the largest Ethereum treasury holder — recently moved to expand its at-the-market equity program to $24.5 billion to fund further acquisitions. The company already holds 1.15 million ETH, valued at roughly $5 billion at current prices.

Spot Ethereum ETFs have also played a pivotal role, adding approximately $5 billion to their combined market cap in the past month alone, and hitting a record $1 billion in daily net inflows on Monday. Since launching in July 2024, these funds have attracted $9.4 billion in total net inflows.

According to Bitwise Chief Investment Officer Matt Hougan, the combined activity from ETFs and corporate treasuries has triggered a “demand shock,” with purchases outpacing ETH’s network issuance by a staggering 32-to-1 ratio since May. Hougan believes this imbalance could push the token’s price even higher in the months ahead.