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Over the past weekend, the price of Ethereum (ETH) briefly broke through the important psychological level of $4,300, reaching a new high since December 2021. This breakthrough is mainly attributed to strong capital inflows into Spot ETFs and corporate demand for government bonds.
As of the latest report, the price of ETH has risen by 2.3%, reaching $4,278. Since its launch, the Spot Ethereum ETF has attracted an astonishing $9.8 billion in net inflows, with over $6 billion in 2023 alone, demonstrating strong interest from investors in this digital asset.
It is noteworthy that cryptocurrency fund management companies currently hold over $13 billion in ETH, accounting for 2.5% of the total supply. This data highlights the confidence that institutional investors have in Ethereum.
ETH has risen approximately 15% this month, while last month it surged by 49%. VanEck analyst Matthew Sigel believes that ETH's strong performance is mainly due to the growth in demand for tokenization and stablecoins. He pointed out that the Ethereum network has accounted for 62% of stablecoin value transfers so far in 2025 and has locked 71% of assets in the decentralized finance (DeFi) space. This has made Ethereum the preferred blockchain for financial institutions for tokenization and stablecoin projects.
Ethereum's native token ETH is not only a digital currency but also the fuel for the entire Ethereum ecosystem. With the ongoing advancement of institutional adoption and network upgrades, the future development of Ethereum is worth looking forward to. However, investors should also keep in mind the high volatility of the cryptocurrency market and remain cautious in their investment decisions.