The world’s second-largest cryptocurrency continues its massive journey adding another 7% gains today. A few moments back, Ethereum (ETH) hit its new all-time high of $3800 with its market cap going to $440 billion.
With this, ETH has extended its market dominance to more than 18% while pushing Bitcoin (BTC) dominance under 45%. The Ethereum price rally comes amid a rapid surge in institutional interest. CryptoQuant CEO Ki-Young Ju mentioned that the Coinbase premium for Ethereum is very high.
The Ethereum Coinbase Premium is the gap between the ETH price on Coinbase Pro and Binance indicating a strong spot buying pressure on Coinbase from institutional players.
Still an insane $ETH Coinbase premium.
— Ki Young Ju 주기영 (@ki_young_ju) May 8, 2021
Since institutional buying in ETH has spiked, the ETH supply at the exchanges has been on a declining trend since last August. Below is the graph showing the rising ETH price against the falling exchange supply over the last three months. The total ETH supply at all exchanges has dropped to 18.78 million.
Big players from the financial markets are also jumping to get a slice of the emerging Ethereum popularity. Earlier today, CoinGape reported that VanEck has filed for the first-ever U.S. Ether ETF.
Earlier this week on Tuesday, the CME Ether Futures topped $1 billion showing strong institutional interest. Besides, the ETH Futures aggregated volume has also topped $10 billion for the very first time.
— Open4crypto (@open4crypto) May 8, 2021
Ethereum EIP-1559 Launch to Further Reduce ETH Circulating Supply
It looks like the Ethereum rally won’t be stopping anytime soon! The Ethereum network is all set for a major upgrade with the London hardfork scheduled this year in July. As part of this upgrade, the network will unveil the Ethereum Improvement Protocol (EIP) 1559. As data analytics platform CoinMetrics reported:
“EIP-1559 is set for release in July as part of Ethereum’s London hard fork. In addition to improving ETH gas UX, EIP-1559 will burn a portion of ETH transaction fees. This will permanently remove a portion of supply from circulation and decrease the daily net issuance of ETH.”