@Lagrange Official $LA #lagrange
Recently, the price of ETH has skyrocketed for the following three main reasons:
- Large institutional purchases: Significant inflow of funds into Ethereum ETFs, with a net inflow of over $5.76 billion since July; BlackRock's daily increase in holdings reached $158 million. At the same time, publicly listed companies are also hoarding ETH, such as SharpLink holding 280,000 ETH (worth $840 million), surpassing the Ethereum Foundation; Bit Digital sold BTC and bought 100,000 ETH, resulting in a 300% surge in market value. The massive buying by institutions has provided ample funds for the market, driving up the price of ETH.
- Staking lock-in leads to supply contraction: Currently, about 43% of ETH is locked (approximately 35.6 million coins), with an annualized staking yield of around 5%. This has strengthened the long-term holding willingness of institutions, reducing the amount of ETH available for circulation in the market, creating a supply contraction trend, and driving prices up amid increasing demand.
- Favorable policies: The advancement of the U.S. GENIUS Act, clear regulation of stablecoins, and ETH is expected to become the core settlement layer, enhancing market confidence in ETH. In addition, Hong Kong allows ETF staking, and the pilot for RWA (real-world assets) has expanded, leading to an influx of compliant funds, providing strong support for the rise in ETH prices.
