After a mixed year in 2024, Ether could reach a new record price in the new year. At least that was an estimate from the blockchain analysis company CryptoQuant in December.
• Bitcoin performed significantly better than Ether in 2024
• But in 2025 Ether could finally reach a new record level
• Blockchain analysis company points to demand and supply dynamics
In 2024, Ether (ETH) increased by 46 percent. But as good as it seemed at first glance, the world’s second largest cyber currency by market capitalization lagged far behind its big brother, Bitcoin. The original cryptocurrency rose by an enormous 121 percent last year and, spurred on by the US presidential election, even broke the $100,000 mark for the first time in its history.
Advertising
Over 500+ cryptos and 3,000 digital assets
Bitpanda is the BaFin-licensed crypto broker from Austria and the official crypto partner of FC Bayern Munich. Create your account with just a few clicks and benefit from 0% deposit and withdrawal fees.
The Trump Effect
Cryptocurrencies have been driven forward in recent months by Donald Trump’s victory in the US presidential election. The 78-year-old Republican declared during his election campaign that he would be the “pro-Bitcoin president” that America needed and promised to leave the crypto market largely unregulated.
Ether investors are hoping that the new Trump administration will provide greater regulatory clarity, particularly regarding the classification of so-called staking. You have to know that validators (users who validate transactions and propose new blocks on the Ethereum blockchain) have to firmly anchor ETH tokens in the blockchain to participate in the network in order to secure them. Although they receive some kind of return for this staking, the ETH cannot be used in more lucrative DeFi protocols during this time. Liquid staking protocols solve this problem by giving users a different token as a collateral token, which has more or less the same price and, like the original, can be used on other DeFi platforms to generate additional returns there. Clear guidelines from a new government could now lead to institutional and traditional financial players adopting liquid staking tokens, investors look hopefully to 2025.
Ether record in 2025?
Things could be much better for Ether this year than in 2024. If the current demand and supply dynamics continue, then the Ether price could even exceed the $5,000 mark in 2025, CryptoQuant predicts according to “MarketWatch”. . For comparison: the ETH/US dollar pair is currently only trading at $3,423.45 (as of January 19, 2025).
If Ether actually manages to achieve such a price jump, it would also mean a new all-time high. The previous record level is $4,865 and was reached in November 2021.
Ethereum ETFs in demand
One reason for the blockchain analytics firm’s optimism is the high interest in ETH ETFs. Following huge recent inflows, these exchange-traded funds’ Ether holdings recently climbed to a record high, according to data from CryptoQuant.
The first spot Ether ETFs celebrated their stock market debut at the end of June 2024, after trading in spot Bitcoin ETFs had already been approved by the US regulator SEC in January of the same year. After a year-long process, this step gave investors in the USA easier access to another major cryptocurrency, because investing in such exchange-traded funds represents less of a hurdle for many investors than directly with digital money. This is particularly true for institutional investors such as insurance companies or pension funds because they are already very familiar with ETFs. In addition, ETFs that are managed by a regulated financial institution offer a certain level of security, which is particularly important for institutional investors with their strict regulations.
Supply growth slowed
But while demand is increasing sharply, the cryptocurrency’s supply growth appears to have slowed. This is at least indicated by the increasing amount of Ether being burned through transaction fees, write CryptoQuant analysts in a recent report, according to “MarketWatch”.
Editorial team finanzen.net
This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claims for recourse.