ETH returns to $3,000: Six major reasons to boost Is the copycat season coming

Deng Tong, Bitchain Vision

This morning, ETH stood at the $3,000 mark for a short period of time, the first time since early February this year.In recent days, the ETH market has changed its previous downturn, rising from around $2,500 to $3,000. As of press time, it has a seven-day increase of 16.2%.

According to 8marketcap data, Ethereum’s market value rose to US$361.68 billion, surpassing SAP and ranking to 35th in global asset market value.Although the rise in ETH has a linkage effect with BTC, what other factors are affecting the ETH market?What do industry insiders say?Is Ethereum leading the altcoin season?

1. What factors are driving the ETH market to rise?

1. Driven by stablecoin ecosystem

On the Ethereum network, the issuance of stablecoins has always remained active, and is an on-chain cash engine that promotes the continuous demand for ETH block space and ensures the liquidity of the Ethereum on-chain ecosystem.On June 26, the adoption rate of Ethereum-based stablecoin was hitting a record high, with more than 750,000 independent users per week.USDT and USDC together account for the majority of the approximately $134 billion stablecoin market on the network.

• On March 25, the stablecoin USD1 launched by the Trump family project World Liberty Financial was issued based on Ethereum and Binance Smart Chain.

• On June 10, Société Générale-Forge, a crypto subsidiary of Societe Generale, announced the launch of the USD-peeled stablecoin, USDCV, based on issuance on Ethereum and Solana blockchains.

• On May 22, Circle issued 100 million USDCs on the Ethereum network.

• On June 18, Tether minted 1 billion USDTs on the Ethereum network.

• On July 4, Tether issued 1 billion USDTs on the Ethereum network.

In addition, stablecoins play an important role in trading and lending.Not only is it an important asset in the DeFi field, it can also drive Ethereum trading volume and asset liquidity.According to Token Terminal data,Active loans on lending agreements on Ethereum reached US$22.6 billion, a record high.Among them, important players in this market include: Aave, Spark, Morpho, Maple, Fluid, Compound, Euler, etc.

2.Ethereum treasury companies are increasing

More and more companies are using ETH as a treasury asset, which will undoubtedly strengthen Ethereum’s “digital gold” position in asset allocation., which also proves that companies are optimistic about Ethereum’s development prospects and future market trends.

• On June 26, US listed companiesBit Digital announces strategic transformation, plan to gradually stop the Bitcoin mining business and gradually convert the BTC it holds into ETH, focusing on Ethereum staking and asset allocation,Become a “pure Ethereum pledge and treasury company”.

• From June 28 to July 4,SharpLink GamingSpend about $19.2 million to increase its holdings of 7689 ETH.On July 10, Sharplink Gaming increased its holdings of 5,072 Ethereum (ETH), worth approximately US$13.51 million.On July 11, Sharplink Gaming once again increased its holdings of 12,648 ETH to a value of US$35.31 million.Currently, the company holds more than 222,000 ETH, with an average purchase price of US$2,617.

• June 30,BitMine announces pricing and signs private placement agreement, purchase and sell 55,555,556 shares of common stock (or the substitute common stock equivalent) at $4.50 per share, with an estimated total revenue of approximately $250 million, deducting the placement agency fees and other issuance fees (funded in a combination of cash and cryptocurrencies) to implement the Ethereum financial strategy.

• July 8,GameSquare Holdings, Inc. announced that the board of directors has approved the establishment of an Ethereum treasury in phases, with a total amount of up to $100 million.8,421,054 common stock (or common stock equivalent) will be sold at $0.95 per share, with total revenue expected to be approximately $8 million before deducting discounts and commissions and issuance fees as the first batch of Ethereum treasury establishment fees.On July 10, GameSquare made another move: it announced that it had spent $5 million to buy 1,818.84 ETH to support its Ethereum treasury.

• July 8,Blockchain technology company BTCS Inc. plans to raise $100 million to acquire Ethereum in 2025.The move is part of the company’s long-term vision to build a leading public company focused on Ethereum infrastructure while continuing to be one of the largest ETH holders among listed companies.Depending on the market situation, the company plans to raise funds to acquire Ethereum in a rolling manner and strive to maximize capital efficiency.Charles Allen, CEO of BTCS, said:“We believe Ethereum has huge growth potential and is at the heart of the future digital financial infrastructure. Now, Ethereum’s price is at the 2021 level, which is a good time for us to deepen our investment.”

• July 10,Thumzup Media CorporationIts crypto-funding strategy has been expanded beyond Bitcoin, covering several major digital assets, including ETH, SOL, and more.

Anthony Sassano, founder of The Daily Gwei, pointed out that the number of ETH purchased by companies holding Ethereum as its vault asset has exceeded the number of newly issued ETH.In the past 30 days, about 77,000 new ETHs have been issued (about 57,000 net issuance after deduction).During the same period of time, Ethereum Vault Company purchased more than 200,000 ETH.

3. Buy a giant whale

• On July 5, a giant whale purchased 1616.53 ETH when the market fell rapidly, with a total value of about US$4.038 million, and an average purchase price of US$2492.04.

• On July 9, according to OnchainLens monitoring, a whale address sold 69.07 WBTC (approximately US$7.49 million) to buy 2,881 ETH, with an average purchase price of US$2,600.

• On July 10, according to monitoring by the on-link analysis platform Lookonchain, within one day, 7 institutions or whale accounts purchased a total of 127,971 ETH worth about US$358 million.

• On July 10, according to @ai_9684xtpa monitoring, the two addresses increased their holdings by more than 12,000 ETH, with a total value of approximately US$33 million.Among them: The starting address of 0x8C0 spent US$25 million to buy 9187.52 ETH in the past 7 hours, with an average price of US$2721; pfm.eth built another position in ETH after two months, and bought 2900.5 ETH at an average price of US$2766, with a value of approximately US$8.02 million.

The actions of the giant whale can be used as a reference for market confidence.The frequent large-scale purchase of giant whales means that the market’s confidence in the ETH price trend is recovering, which will be beneficial to the future market.

4. Official Ethereum Strategy

On July 10, the Ethereum Foundation announced the restructuring of its EcoDev strategy, focusing on four key areas.The program includes the creation of four new teams focused on ecosystem acceleration, covering corporate relationships, developer growth, applied research and founder support.The Foundation will also strengthen ecosystem expansion efforts, continue to provide funding support, and work to address barriers to global adoption.The adjustment aims to achieve two major goals: expanding the Ethereum user base and enhancing the resilience of its technology and social infrastructure.The Foundation emphasizes that it will work with a wide range of partners in the ecosystem to drive the growth and development of Ethereum.

As early as July 4, the Ethereum Community Fund issued a statement on the X platform saying that it will release complete funding details, first batch of work initiatives, core team and contribution value information in the next few weeks, as well as disclosure of how to apply or contribute.The Ethereum Community Foundation said the organization is not a think tank, but a “fighting fund” that will push ETH to $10,000.ETH is an on-chain infrastructure, public products, and is not censored.

Ethereum co-founder Vitalik Buterin and Ethereum researcher Toni Wahrstätter also co-wrote the proposal EIP-7983, intending to set the Gas cap for a single Ethereum transaction to 16.77 million.The proposal aims to reduce the risk of denial of service (DoS) attacks, optimize zero-knowledge virtual machine (zkVM) performance, and balance overall Gas usage efficiency.

5. U.S. crypto policy shifts

On July 5, Grayscale posted on X platform: “We believe Ethereum may benefit from a U.S. crypto-friendly policy shift, new legislation like Genius Act could clarify stablecoin rules, drive investment, and accelerate the popularity of smart contracts.With strong development activities and expansion plans, Ethereum is ready to benefit from it.”

Recently, the US GENIUS Act and the CLARITY Act have attracted attention one after another. The US crypto policy shift has provided a more favorable development environment for various projects in the Ethereum ecosystem, which will attract more developers to participate in the construction of the Ethereum ecosystem, promote the innovation and development of applications such as DeFi and NFT, and further consolidate Ethereum’s position in the blockchain field.In addition, as a demonstration zone for cryptocurrency regulation, the United States’ policy orientation will also affect the global cryptocurrency regulatory landscape. If the US regulatory policy is beneficial to ETH prices, the future clear global regulatory policies will further promote the rise of ETH prices.U.S. regulatory policies are bringing medium- and long-term policy benefits to Ethereum in terms of compliance paths and institutional participation.

6. Ethereum ETF continuous net inflow state

Recently, Ethereum ETF has always been in a state of net capital inflow, especially in the past two days: On July 10, the net inflow of US spot Ethereum ETF was US$383.1 million, which is the second highest net inflow in the fund in history; on July 9, the net inflow was US$211.3 million; on July 8, the net inflow was US$29.5 million; on July 7, the net inflow was US$62.1 million…

Matt Hougan, chief investment officer of Bitwise, believes that funds flowing into Ethereum exchange-traded funds will accelerate significantly in the second half of the year, as more and more stablecoins and stocks will begin to trade on the Ethereum chain, which is an easy phenomenon for traditional investors.In June this year, the inflow of Ethereum ETFs has reached US$1.17 billion. If this trend is followed, the inflow of Ethereum ETFs is expected to reach US$10 billion in the second half of the year.

The continued net inflow of Ethereum ETFs means more capital flows into the market to buy ETH-related assets, which directly increases the demand for ETH.The supply of Ethereum is relatively stable for a certain period of time. According to the principle of supply and demand, the increase in demand will inevitably drive the price of ETH.

2. The views of industry institutions and people

• 10x Research noted on July 9:Currently, Ethereum (ETH-USDT) price is higher than the 7-day moving average and 30-day moving average, which means that the ETH price is in a bullish trend.In the past week, ETH price has risen by about 3.6%, which may be driven by about $148.5 million of funds flowing into the Ethereum ETF, especially BlackRock Ethereum ETF, which has begun to increase its holdings in ETH. The ETF’s assets have reached about $4.6 billion.In addition, BitMine raised US$250 million to support ETH asset strategy, and SharpLink Gaming increased its holdings of 9,468 ETH, enhancing institutional demand.

• Matrixport notes:Coupled with the strong seasonality since July, Ethereum’s current price structure is not only driven by market inertia, but also reflects the resonance of fundamental support and market expectations..For long holders, $2,500 should still be considered a key technical support level.

• Bankless co-founder David Hoffman saidEthereum’s continued investment in trustworthy neutrality and MEV (miner extractable value) minimization may bring additional advantages to its adoption in traditional finance (TradFi).He pointed out that blockchains like Robinhood that use a single sorter do not have illegal MEV problems, but Ethereum’s investment in fair MEV infrastructure is equivalent to “compliance” efforts in traditional finance.This investment may become an important driving factor for traditional financial institutions to choose Ethereum over other blockchains, further enhancing Ethereum’s competitiveness in compliance and technological credibility.

• Eric Conner, a former core Ethereum developer, said that Ethereum has hovered between $2,400 and $2,600 for several weeks, with trading volume decreasing and highs and lows quietly appearing.Long-term consolidation usually leads to violent fluctuations.thereforeIf ETH firmly breaks through $2,600, the trend may be rapid and drastic.

• 1confirmation founder Nick Tomaino disclosed data,Ethereum has occupied more than 80% of the real-world assets (RWA) market share and 50% of the stablecoin market share. Trusting RWA and trusting stablecoins is equivalent to trusting ETH.

3. Is Ethereum going to lead the altcoin season?

Data analysis platform Swissblock pointed out that Ethereum’s current trend against Bitcoin is much more bullish than in the second quarter.It may herald the beginning of the altcoin season.The analysis points out thatThe inflow momentum of Ethereum is growing, and the narrative of its ecosystem is growing, in stark contrast to the weakening and consolidation of Bitcoin.If ETH stays strong, it may mark the real start of the altcoin season.This shift coincides with a decline in BTC dominance, a historical marker of the surge in altcoins.

The obvious demand for Ethereum’s recent strong demand from institutional investors further pushed up Ethereum’s rise.Chicago Mercantile Exchange (CME) Ethereum futures open contracts have climbed to $3.27 billion, the highest since February 2.This surge indicates an increase in holdings among institutional investors, reflecting the growing interest in ETH by professional investors as price momentum increases.

4. Summary

ETH rose above the $3,000 mark today, and was affected by multiple factors such as the increase in Ethereum treasury companies, the purchase of giant whale, the transformation of Ethereum’s official strategy, the shift in US crypto policy, net inflow of Ethereum ETFs, and the driving of stablecoin ecosystem.Industry insiders generally hold a positive view on the prospects of ETH, and some data analysis platforms believe that altcoins are about to take off.

In the short term, the promotion of capital is directly beneficial to the price trend of ETH, but in the long run, technological development, ecological construction, the favor of traditional finance, and the improvement of regulatory policies are the factors that make ETH more long-term investment value.