{"id":19065,"date":"2025-10-15T09:55:13","date_gmt":"2025-10-15T08:55:13","guid":{"rendered":"https:\/\/investx.fr\/en\/?p=19065"},"modified":"2025-10-15T09:55:15","modified_gmt":"2025-10-15T08:55:15","slug":"3-key-factors-pointing-to-an-ethereum-surge-by-year-end","status":"publish","type":"post","link":"https:\/\/investx.fr\/en\/crypto-news\/3-key-factors-pointing-to-an-ethereum-surge-by-year-end\/","title":{"rendered":"3 Key Factors Pointing to an Ethereum Surge by Year-End"},"content":{"rendered":"\n

Staking and ETFs are Massively Absorbing Available Ethereum Supply<\/h2>\n\n\n\n

The first major supply absorber comes directly from Ethereum ‘s<\/a> staking mechanism<\/strong>. Currently, more than 34 million ETH are locked<\/strong> in the staking contract, representing approximately 28% of the total circulating supply<\/strong>. This massive immobilization mechanically reduces available liquidity in spot markets and creates natural upward pressure.<\/p>\n\n\n\n

The arrival of Ethereum<\/a> spot ETFs<\/strong> in the United States has amplified this phenomenon dramatically. Asset managers are accumulating significant positions to meet growing institutional demand. Grayscale, BlackRock, and Fidelity<\/strong> have collectively absorbed several hundreds of thousands of ETH<\/strong> since launching their products.<\/p>\n\n\n\n

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Source: StrategicEthReserve<\/strong><\/figcaption><\/figure>\n\n\n\n

Inflows to these investment vehicles show no signs of slowing down. Traditional investors are discovering exposure to Ethereum<\/strong> through regulated products, generating sustainable structural demand. This institutional buying pressure compounds with that of long-term holders who withdraw their tokens from exchanges to store them in cold wallets.<\/p>\n\n\n\n

Do as these institutions do and invest in Ethereum for the long term with Bitget<\/strong>. Reduced fees, intuitive interface and most importantly a $10 bonus offered<\/a><\/strong> after your registration here:<\/p>\n\n\n\n

\"bonus<\/a><\/figure>\n\n\n\n

Token Burning Intensifies the Deflationary Dynamic<\/h2>\n\n\n\n

The EIP-1559<\/strong> mechanism implemented during the London hard fork in August 2021 constitutes the second major supply absorber. This system automatically burns a portion of transaction fees, permanently removing these tokens from circulation. Since its implementation, more than 4.5 million ETH have been destroyed<\/strong>, equivalent to approximately $12 billion<\/strong> at the current price.<\/p>\n\n\n\n

The deflationary<\/strong> dynamic intensifies during periods of high network activity. When DeFi applications, NFT platforms, and layer 2 protocols generate high transaction volumes, the burn rate increases proportionally. Some days have even seen Ether become ultra-deflationary<\/strong>, with more tokens burned than issued through staking rewards.<\/p>\n\n\n\n

This permanent reduction in supply creates a programmed scarcity effect<\/strong> within the protocol itself. Unlike Bitcoin with its maximum supply capped at 21 million, Ether has no theoretical ceiling but achieves a form of dynamic scarcity through this destruction mechanism. Traders monitor the net issuance rate as a key indicator of the network’s economic health.<\/p>\n\n\n\n

DeFi and Institutional Demand Maintains Buying Pressure<\/h2>\n\n\n\n

The third factor comes from the growing use of Ethereum<\/strong> as infrastructure for decentralized finance. Lending protocols, decentralized exchanges, and yield farming platforms<\/strong> all require ETH as collateral or to pay gas fees. This utility demand<\/strong> represents a solid foundation<\/strong> of buying pressure independent of pure speculation.<\/p>\n\n\n\n

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~62% of all tokenized assets are on @ethereum<\/a>.

Data includes tokenized currencies, commodities, treasuries, private credit, private equity, and venture capital. pic.twitter.com\/3lUQT86MbC<\/a><\/p>— Token Terminal \ud83d\udcca (@tokenterminal) October 13, 2025<\/a><\/blockquote>