On Tuesday, the Ethereum price saw a notable increase, rising 6.5% and reaching the critical $3,300 mark for the first time in almost a month. This has allowed Ethereum to surpass its peers in the top ten cryptocurrencies by market capitalization, showing a recovery of almost 12% for the leading altcoin in the past week.
ETH is growing in demand
Bull Theory analysts attribute this resurgence to several key factors, including significant institutional interest in Ethereum. The company highlighted BitMine, which holds the largest ETH collection among publicly traded companies, as a key player in this recovery phase.
In a recent social media update on X (formerly Twitter), the analysts pointed out that demand for ETH is increasing as Wall Street quietly builds on the Ethereum platform.
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Large financial institutions in particular are starting to make substantial moves in the Ethereum space. BlackRock, which manages $13.5 trillion, is launching tokenized funds and has filed for an Ethereum exchange-traded fund (ETF).
Other notable players include JPMorgan with $4 trillion in assets, Deutsche Bank with $1.1 trillion, and Standard Chartered with $800 billion. These companies are developing tokenization and decentralized finance (DeFi) infrastructure specifically on Ethereum and its Layer 2 (L2) solutions.
Additionally, well-known financial entities such as Amundi, HSBC, BNY Mellon, Coinbase (COIN), Kraken and Robinhood (HOOD) are incorporating Ethereum into their operations for functions such as custody, settlement and rollup infrastructure.
As a result, these big companies keep and Stake ETH to generate returns, significantly increasing demand for the altcoin. For example, BitMine expects to earn more than $400 million annually from its betting position.
Can Ethereum Price Reach $12,000?
Such institutional involvement has led market experts such as Tom Lee to speculate that the Ethereum price could potentially reach $12,000 by 2026, driven by growing demand for staking and the scaling of tokenization efforts.
Which increases the momentum, Arkham reported that Tom Lee’s Ethereum Treasury business has acquired 138,452 ETH since last week, worth approximately $431.97 million. BitMine currently owns $12.05 billion worth of ETH and has allocated another $1 billion for further purchases.
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In another development that could further boost the Ethereum price, Chris MacDonald, analyst for The Motley Fool, said: marked reports indicating that the Office of the Comptroller of the currency (OCC) has confirmed that US banks can now legally conduct “risk-free principal transactions” in crypto assets.
The analyst claimed that this new regulatory approval could lead to an influx of capital into digital assets, which would likely benefit the Ethereum price and holders, as well as other top cryptocurrencies.
At the time of writing, Ethereum price is trading at $3,325. Despite recent gains, the price is still nearly 33% below the all-time high of $4,946 reached earlier this year.
Featured image of DALL-E, chart from TradingView.com