Ethereum had an incredible Ethereum July 2024, soaring more than 50% to score its best month since 2022. This rally came just as the blockchain celebrated its 10th anniversary on Jan. We interpret the price increase as a sign of the growth of long-term institutional interest, even as the network is upgraded day-by-day.
The surge is attributed to several factors. This wasn’t for lack of fundamentals to back it – a major driver was the massive inflow of capital from institutional investors, signaling their growing confidence in Ethereum’s potential. Much of the enthusiasm, however, centers on soon-to-be-approved spot Ethereum ETFs. That thrill is attracting the attention of traditional investors and asset managers seeking regulated access to the cryptocurrency.
Ethereum’s Total Value Locked (TVL) across lending, trading, and cross-chain protocols across Ethereum and other networks remained largely impervious to the market madness. Additionally, since the original launch, the implementation of other major network upgrades like the recent Dencun update have improved network efficiency and scale. Positive sentiment was fueled by features such as the Shanghai/Capella staking withdrawal capabilities.
This rally is different from the July 2022 price surge in many ways. The surge of 2022 was mostly a recovery from the Terra-Luna collapse and was fueled by short-term speculative trading.
Unlike those post-recession fireworks, the 2024 rally is a sign of a more grown-up industry. This will be a significant tipping point for Ethereum’s legitimacy within the established financial ecosystem. As with many global transformations, institutional adoption and technological advancements are fueling this change.
