- Ethereum stakes create record weekly flow of +10k ETH.
- ETH is up 7.82% during this period.
All month long, Ethereum [ETH] has experienced increased demand and a sharp price increase that has reached $3,500 for the first time since July.
While ETH is struggling to keep up with Bitcoin [BTC]hitting new ATHs five times in the past week, the altcoin is up 34% on the monthly charts.
Over the past week in particular, Ethereum has seen a sharp rise from a low of $3031 to a high of $3500. During this period, Ethereum staking saw record inflows. According to MaartunThe weekly net flow of ETH staking has reached an all-time high.
Ethereum Staking Creates Record Weekly Flow
According to data from IntoTheBlock, Ethereum stakes have seen strong weekly net flows after months of outflows.
Source: IntoTheBlock
This past week, Ethereum stakes recorded a total net flow of +10k ETH, with 115k ETH deposited and 105k ETH withdrawn.
Such a huge net flow marks a significant change in market dynamics as withdrawals have long exceeded deposits.
Based on Maarunn’s observation, some of the factors driving this increase are higher ETH prices and improved staking infrastructure.
Therefore, this shift is essential for ETH prices as it helps reduce ETH supply, which helps reduce inflation. Often reduced supply and increasing demand are essential for a price increase.
Thus, this increased inflow is a vital positive indicator for the overall growth of the Ethereum ecosystem and the future value of ETH.
What ETH charts show
This reduction in ETH supply is further evidenced by a rising stock-to-flow ratio. When the SFR rises, it means an asset is becoming scarce. Normally, scarcity is critical to value because it reduces oversupply.
When there is little supply of an asset and there is more demand, prices often rise.
Source: Santiment
Our analysis of IntoTheBlock also shows that Ethereum has seen a significant influx of large holders. This has risen to a monthly high.
Such market behavior implies that large holders are actively purchasing the altcoin, creating buying pressure and further reducing supply.
Source: IntoTheBlock
Impact on price charts?
As noted above, the increased net flows have had positive impacts on ETH prices. Therefore, as deposits have increased, so have altcoin prices, reaching a recent high.
Read Ethereum’s [ETH] Price forecast 2024–2025
During this period, ETH has risen by 7.82 and is trading at $3381 at the time of writing. This shows that even though bulls are fighting dominant bears, the altcoin is building upward momentum.
Therefore, if buyers take full control of the market, ETH could see more gains. If this happens, ETH will regain the $3560 resistance level.