Ether Hits $4,000 as Coinbase Premium and Ethereum Active Addresses Surge

Markets

Share this article

By James Van Straten, Tom Carreras

Dec 6, 2024, 4:08 p.m. UTC

What to know:

Ether is now trading above $4,000 for the first time since March.The price of ETH is higher on Coinbase than on Binance, suggesting U.S. institutional interest in the token.Active addresses on the Ethereum network have also seen a sharp bump.

The price of Ethereum’s ether (ETH) broke above the $4,000 mark on Friday for the first time since March.

The second-largest cryptocurrency is up 2.4% in the last 24 hours and 8.4% in the last seven days, outperforming bitcoin (BTC) in both timeframes. The move comes as spot ether exchange-traded funds saw record inflows on Thursday.

Story continues below

Don’t miss another story.Subscribe to the Crypto for Advisors Newsletter today.See all newslettersBy signing up, you will receive emails about CoinDesk products and you agree to ourterms of useandprivacy policy.

As of writing, ether is trading for $4,033, just 2% away from setting a fresh 2024 high. It’s also a mere 20% away from its all-time high of $4,868. The ETH/BTC ratio, which has been getting hammered since September 2022, has reached 0.04 again — a level that marked a brief top for ether in relation to bitcoin on Nov. 10.

The Coinbase premium on ether also continues to expand — meaning that ether is trading for a higher price on the exchange than on the most liquid crypto exchange, Binance. Coinbase premiums are generally seen as a sign of demand among U.S. institutional investors as well as retail participants. TradingView data shows a slight increase in ether’s price on Coinbase relative to Binance, suggesting the market is driven by activity from the U.S,., which coincided with the U.S. market opening around an hour ago.

That’s not all. Glassnode data shows that active addresses on Ethereum have shot up on a 7-day moving average from 368,000 to 523,000 from Sept. 24 to Dec. 5, indicating an expansion of on-chain activity, which in turn ends up benefitting ether by constraining its the token’s supply through the “burn” mechanism.

Meanwhile, the CoinDesk 20 — an index of the top 20 cryptocurrencies by market capitalization excluding memecoins, stablecoins and exchange coins — is down 1.4%, with its worst performers consisting of stellar (XLM) and litecoin (LTC), which have dropped 3.1% and 5% respectively in the last 24 hours. Uniswap (UNI) and render token (RDNR), however, are up 11.7% and 6.4% in the same period of time.

As the senior analyst at CoinDesk, specializing in Bitcoin and the macro environment. Previously, working as a research analyst at Saidler & Co., a Swiss hedge fund, introduced to on-chain analytics. James specializes in daily monitoring of ETFs, spot, futures volumes, and flows to understand how Bitcoin interacts within the financial system. James holds more than $1,000 worth of bitcoin, MicroStrategy (MSTR) and Semler Scientific (SMLR).

Tom was sucked into crypto in 2020 and is very much enjoying the ride. Now a markets reporter for CoinDesk, he previously wrote for DL News about bitcoin ETFs, the Federal Reserve, bitcoin mining and crypto adoption in Latin America. He has a bachelor’s degree in English literature from McGill University and can usually be found in Costa Rica. He holds BTC, ETH and SOL above CoinDesk’s disclosure threshold of $1,000.

DISCLOSURE

Please note that ourprivacy policy,terms of use,cookies, anddo not sell my personal informationhave been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.

© 2024 CoinDesk

 

Leave a Reply

Your email address will not be published. Required fields are marked *