Ethereum rallies as stablecoin supply and ETF inflows strengthen demand

Ethereum has rallied to levels not seen in several weeks, supported by rising stablecoin supply, consistent net inflows into Ethereum ETFs and trading volume above its 30-day average. Growth in USDT and USDC supply suggests greater liquidity and potentially more purchasing power for crypto assets, while ETF inflows provide a regulated channel for institutional capital. The move appears broad-based, with support from both spot buying and derivatives activity. Analysts caution that the rally could remain volatile because markets are sensitive to interest-rate expectations and regulatory developments. Its durability will depend on whether stablecoin and ETF inflows continue and broader sentiment stays positive.

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