This year, Ethereum might reach $10,000 due to a demand shock.
Ethereum has experienced a robust recovery after declining gradually for the first four months of the year. It is currently up more than 65% over the past 30 days.
Bitwise Chief Investment Officer Matt Hougan stated on X on Wednesday that the “overwhelming demand” from corporate treasuries and exchange-traded products is the cause of this surge.
The executive likened Ethereum to Bitcoin, which has been steadily increasing over the last 18 months since corporate treasuries and ETPs “have been buying more than 100% of all the new Bitcoin being produced.”
Ethereum Supply and Demand
Ether ETFs, which were introduced in July 2024 and did not perform as well, had inflows of only $2.5 billion until mid-May, but Ethereum had not enjoyed the same trend until lately. All of that changed recently, though, as spot ETH ETFs swept up the asset at previously unheard-of amounts.
According to Bitwise, since May 15, corporate treasuries and ETPs have purchased 2.83 million ETH, totaling nearly $10 billion at current rates. This is 32 times the net new supply during that time.
Because investors are “significantly underweight” on Ethereum relative to Bitcoin, Hougan anticipates that this tendency will continue. Stablecoin laws and a booming real-world asset tokenization sector will further increase the need for Ethereum.
“Meanwhile, all signs suggest the ‘ETH treasury company’ trend will accelerate,” he continued.
“As I look ahead, I can see Treasury firms and ETPs purchasing $20 billion worth of ETH over the next year, or 5.33 million ETH at current prices.”
Over the same time frame, the network is anticipated to generate about 800,000 ETH, he continued, meaning that demand will be seven times more than supply.
Arthur Hayes, the founder of BitMEX, agreed in his most recent blog post on Tuesday. Before forecasting that the asset will reach $10,000 by the end of the year, he declared, “The upcoming Ether bull run is about to tear the market a new asshole.”
ETH Price Outlook
As of this writing, ether prices have been comparatively stable throughout the last day, with the asset trading for $3,720.
Over the past few days, it has struck resistance at $3,800 three times before beginning to consolidate at current levels.
With an incredible 67% gain from its June trading price of $2,250, Ethereum has outperformed Bitcoin over the previous month.
Disclaimer and Risk Warning
CoinWack does not endorse or is responsible for any content, accuracy, quality, advertising, products, or other materials on this page. The image used in this article is for informational purposes only and is provided to us by a third party. CoinWack should not be held responsible for image copyright issues. Contact us if you have any issues or concerns. Readers should do their research before taking any actions related to the company.