Ethereum continues to grow – yesterday, it registered a gain of 7%. As a result, ETH hit a new ATH of $3,800, and its market cap grew to $440 billion.
This means that Ethereum now has a market dominance of over 18%; meanwhile, Bitcoin’s dominance fell below 45%. The price rally for Ethereum is a result of fast increased institutional interest. The CEO of CyptoQuant, Ki-Young Ju, declared that the Coinbase premium for Ethereum has increased.
The Ethereum Coinbase Premium represents the gap between the ETH price on Coinbase Pro and Binance, which shows a strong spot buying pressure on Coinbase when it comes to institutional players.
As a result of the increase in institutions acquiring ETH, the supply of ETH at exchanges has started to decline – this actually began in August 2020. The total amount of the Ethereum supply has dropped to 18.78 million.
This trend will continue as big names from the financial markets are becoming more interested in Ethereum as well. Just now, it has been reported that VanEck has filed for the first-ever US Ether ETF.
Meanwhile, just a couple of days ago, the CME Ether Futures reached $1 billion, which indicates an increased institutional interest. Also, for the first time, the ETH Futures collective volume has reached $10 billion.
The Ethereum rally is probably not going to stop anytime soon since the Ethereum network is getting ready for an important upgrade with the London hard fork planned to be rolled out in July. This upgrade will include the much-anticipated EIP-1559.
“EIP-1559 is set for release in July as part of Ethereum’s London hard fork. In addition to improving ETH gas UX, EIP-1559 will burn a portion of ETH transaction fees. This will permanently remove a portion of supply from circulation and decrease the daily net issuance of ETH.”