Ethereum Posts Strong Q3 Gain as ETF Flows Slow
Ethereum has ended the third quarter on a high note, trading around $2,680, $2,690 after a strong recovery from its low point in June. The price increase of approximately 11% in September and nearly 67% for the quarter marks a significant turnaround.
The cryptocurrency's resurgence is attributed to U.S.-listed Ethereum ETFs attracting net inflows of around $831 million in September, bringing cumulative inflows to nearly $13.9 billion. However, monthly inflows fell by more than 55% from August's record of $1.85 billion.
The staking demand for Ethereum remains strong, with approximately 43.7 million ETH, roughly 35.8% of the total supply, currently staked. This indicates that investors are choosing to hold onto their Ethereum rather than exit the network, limiting the amount of supply available in the short term.
The picture is not entirely favorable, though, as the sharp decline in transaction fees has led to a decrease in the amount of ETH burned, causing the supply to increase slightly over the past three months. This has weakened the deflationary narrative that was once a key investment argument for Ethereum.