CryptoQuant predicts Ethereum growth to $ 5000

CryptoQuant experts predict that Ethereum ETH $3,884.24 Bridged Ether (StarkGate) -3.73% Market capitalization $0.35 billion VOL. 24 hours $1.91 billion may exceed $ 5000 if current trends in supply and demand and growth in on-chain activity continue. They note that the upper limit of the realized value of Ethereum is currently $ 5200, which corresponds to the peak values of the previous bull market. New market participants are buying Ethereum at higher prices, and this contributes to the growth of this limit, indicating the potential for further growth of the asset.

Among the positive changes, analysts highlight the growth of network activity. The daily transaction volume increased to 6.5−7.5 million compared to 5 million in 2023. The number of smart contract calls, which reflects the use of decentralized applications (dApps), has also increased to 6−7 million, indicating a revitalization of the online ecosystem. The increase in network activity has led to a rise in transaction fees and an increase in the amount of ETH burned through the EIP-1559 mechanism. This, in turn, led to a slowdown in the growth rate of Ethereum supply on the market.

Institutional demand for Ethereum continues to be high. Ether-based exchange-traded funds (ETFs) have been showing stable daily net inflows since November 22. The total assets under management exceeded $ 13 billion, and the cumulative net inflows reached $ 2 billion. In the last day alone, this figure amounted to $ 102 million. In December, BlackRock and Fidelity purchased $ 500 million worth of Ethereum for their ETFs, which confirms the interest of major players.

At the time of writing, the price of Ethereum was $ 3948, which is 21.7% higher than a month ago. For comparison, bitcoin grew by 16.2% over the same period. Analysts believe that these trends may help Ethereum reach new price highs in the near future.