ETH price quickly rebounded from its $3,500 low. What role are DApps’ activity and investor price estimates playing in the recovery?
Ether (ETH) rallied 11.6% from Dec. 10 to Dec. 12, recovering losses from the preceding two days. This price move was partly driven by robust inflows into Ether spot exchange-traded funds (ETFs) and heightened activity on the Ethereum network, which helped restore investor confidence.
Between Dec. 9 and Dec. 11, the spot Ether ETFs recorded net inflows of $557 million, a significant contributor to the rapid price recovery. However, this appears to be more of a result than the primary cause. Investors seized the opportunity to buy the dip at $3,550, anticipating Ethereum’s sustained dominance and the accelerating adoption of decentralized applications (DApps).
Ethereum network total value locked, USD. Source: DefiLlama
