Ether (ETH), the native token of the Ethereum blockchain, has achieved its best performance in July in three years.
The second-largest cryptocurrency rose more than 50% in July, peaking at $3,940 before eased $3,800 towards the end of the month.
The last month this rose sharply in July 2022, rebounding from the depths of the crypto crash marked by Terra-Luna, Three Arrows Capital and the high-profile collapse of Celsius.
ETH Monthly Returns (Coinglass)
This time, the rally will have different drivers who have been poured into money from the capital market.
US-listed Spot Eth Etch-Traded Funds (ETFs) absorbed a net inflow of $5.4 billion throughout the month, according to SoSovalue data.
The corporate balance sheet is also following. Public companies have increased ETH worth $6.2 billion, as part of the Digital Assets Treasury frenzy, according to data collected by cex.io. While Tom Lee’s Bitmine and Joseph Rubin’s Sharplink are two of the most notable players, the latest entrants like Etazilla and Ether Machine have already gathered a large amount of capital from the institution to deploy for asset purchases.
Price action is closely linked to positive narrative changes, positioning ETH as a key proxy in the booming stabilization and tokenization market.
With it hosting more than half of the Stablecoins’ new US rules under the Genius Act and Ethereum and the $250 billion Stablecoin Supply, its clarity can solidify its role as the backbone of the Dollar Peg tokens.
Price-wise, ETH is currently facing resistance at $4,000, and attempts to break through multiple highs last year have failed. The crypto market is also in a historically quiet phase. This can cool the rally during the integration phase.
Still, ETH may have “juice in a tank” that is as high as $4,700 as part of its current run.