Ethereum (ETH) could soon break above $5,000 per coin due to increased institutional demand, according to a new report, which would mark a record price for the second-largest cryptocurrency by market cap.

Not only that, but activity on the chain is buzzing, according to market intelligence firm CryptoQuant. The firm said in a Thursday note that inflows to the new ETH exchange-traded funds, or ETFs, had broken records.

Last week, investors pumped Ethereum funds worldwide with $1.2 billion in new cash—a record set just a few months after the spot ETH funds began trading in the U.S.

“Based on valuation metrics, ETH could be heading above $5,000 if current demand and supply dynamics continue,” the report said, adding that “renewed investor demand” was spurring the run. 

CryptoQuant also noted that the blockchain was experiencing a lot of activity, with total daily transactions now at between 6.5 and 7.5 million for most of the year. Last year, the figure stood at about 5 million per day.

“Higher network activity on Ethereum signifies increased usage and demand for the network’s capabilities, reflecting growing adoption of decentralized applications,” it said.

Ethereum’s network is used by developers to build decentralized applications, such as decentralized crypto exchanges, which can be used to trade speculative assets like meme coins, or transact with stablecoins. 

Both meme coins and stablecoins are seeing considerable traction since the crypto market started growing in market cap again this year. 

Ethereum is now trading for $3,884 per coin, according to CoinGecko. Over the past 30 days, it’s up nearly 19%, and recently topped the $4,000 mark for the first time since March.

Despite the approval and subsequent trading of ETFs giving investors exposure to the asset, the coin—unlike Bitcoin—has struggled to come close to setting a new all-time high. Its previous record of $4,878 was set in 2021. 

Edited by Andrew Hayward