The Grayscale Ethereum inflows surge as the company added another 47,000 ETH making a total of $4.93 billion worth of coins as we are reading more in today’s ethereum news.
The Grayscale Ethereum Trust added another batch of the second-biggest cryptocurrency by market cap, by adding 47,000 ETH to its portfolio. A day ago, 24,800 ETH flowed into the trust and made the inflow of yesterday nearly double the amount as per the data provided by bybt.com. The Grayscale ethereum inflows surpassed the ones of BTC by a wide margin on both days. However, Grayscale Bitcoin Trust is about five times bigger than the GETH. In the meantime, according to Grayscale:
“the network has matured into a robust settlement layer for billions of dollars of peer-to-peer value transfer, investors often find it difficult to identify the investment case.”
As many pointed out before, BTC is known as the digital gold while ETH’s narrative is not so clear however, Grayscale’s report is looking into ETH as money and a consumable commodity so among the conclusions is that ETH is functioning as the new age digital money and its utility drives its use as the main monetary good on the network. However, given that ETH is younger than BTC, its protocol will undergo significant transformations:
“the methodology for valuing the underlying asset, Ether, is opaque and changing. Considering Ether as money, as a consumable commodity, or as an interest-bearing asset allows investors to account for a range of possible outcomes when assigning a fair value to the asset.”
What could be a catalyst for the Ethereum value is the migration to the ETH 2.0 giving the investors the chance to use ETH as a yield-generating asset by staking and the EIP 1559 that instituted a new mechanism that will serve as feedback for the ETH price, converting the coin into a consumable commodity via token burning. In the meantime, Ethereum’s improvement proposal 1559 ran into a few obstacles as a number of miners joined and tried to stop it from being implemented.
In either case, ETH reaches new all-time highs for a few days, increasing 5% in one day and 31% in one week. The peak came ahead of the ETH futures launch on the Chicago Mercantile Exchange in a week.
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