Key Points

• Major cryptocurrency exchanges have received $9.3 billion in ERC-20 stablecoin deposits, indicating a possible bullish rally for Ethereum.
• Ethereum’s active addresses have seen an uptick, suggesting increased retail interest in the digital asset.

Ethereum’s positive momentum is mirroring the broader cryptocurrency market’s recent gains.

Despite not yet hitting its previous all-time high, Ethereum has seen a significant rise.

Ethereum’s Recent Performance

In recent days, the altcoin has risen over 8%, reaching a high of $2,872.

This recovery places the asset around 42.7% below its record high of $4,878 from November 2021.

The gains indicate increased investor interest and demonstrate the altcoin’s resilience amidst Bitcoin’s recent rise.

A CryptoQuant analyst, Mac.D, has noticed a significant development within the Ethereum network.

Following the U.S. presidential election results, around $9.3 billion worth of ERC-20 stablecoins were deposited into cryptocurrency exchanges.

This is the second-largest influx of ERC-20 stablecoins since they were created.

Exchange Inflows and Market Impact

Binance received approximately $4.3 billion, while Coinbase saw an inflow of around $3.4 billion, with the rest being distributed among smaller exchanges.

Large inflows of this scale have historically correlated with bullish market rallies, as seen between September 2020 and February 2021.

If this trend continues, Ethereum and the overall market could be on the verge of another upward trend.

In addition to the surge in ERC-20 stablecoin inflows, Ethereum has also seen a rise in its retail activity.

Data from Glassnode shows an increase in Ethereum’s active addresses, a key indicator of retail interest and network utilization.

After dropping below 400,000 active addresses in late October, the number has since risen to over 430,000.

This increase indicates increased activity on the network, suggesting renewed interest from individual investors and a potential increase in network demand.

Increased network activity often signals higher demand and greater network usage, which can put upward pressure on the asset’s value.

More retail investors engaging with Ethereum could lead to greater liquidity and price stability, showing growing market confidence.

This trend, along with increasing stablecoin inflows and strong exchange activity, paints a positive picture for Ethereum’s near-term potential.