Ethereum surges over 60% with new capital inflows in July
Ethereum (CRYPTO:ETH) has experienced a notable rally in July, rising more than 60 percent from about $2,400 at the start of the month to nearly $3,941 by July 27.
This surge is driven primarily by fresh capital inflows rather than a capital rotation from Bitcoin (CRYPTO:BTC), according to on-chain data analysis by CryptoQuant contributor Carmelo Aleman.
Aleman highlights Bitcoin’s Realized Cap—a measure of the total value of all BTC in circulation based on the price at which each coin last moved on-chain—as evidence that capital is still flowing into Bitcoin.
As of July 25, Bitcoin reached a new all-time high in Realized Cap at $1.018 trillion, indicating continued accumulation rather than distribution.
Ethereum appears to be benefiting from increased interest in its wider ecosystem.
Data from DefiLlama shows the Total Value Locked (TVL) in Ethereum’s decentralized finance platforms rose from $49 billion on April 29 to $84.6 billion by July 29.
Similarly, data records nearly 1.48 million daily transactions on the Ethereum network on July 27, marking steady growth in network activity.
"ETH is simply benefitting from the strong growth prospects of the Ethereum ecosystem," commented Aleman.
There are also signs of decreasing available supply contributing to price pressure. Ethereum reserves on centralized exchanges have dropped by approximately one million coins this past month.
Further, liquid staking on Ethereum has set a new record, with 35.5 million ETH now locked in staking protocols.
At the time of reporting, ETH price was $3,806.26.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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