Ethereum Gains Intraday Strength Boosted by Institutional Demand and Robinhood-Related News

The leading altcoin Ethereum (ETH) is showing intraday strength. This is analyzed to be driven by sustained inflows of institutional funds and the news of fintech giant Robinhood developing its own Layer 2 blockchain, which have strengthened investor sentiment.

As of 6:28 a.m. (KST) on the 1st, CoinMarketCap shows that Ethereum is trading at $2,498, up 2.72% from the previous day.

Crypto-focused media outlet CoinDesk cited institutional demand as a key driver of Ethereum’s strength. According to CoinDesk, "Over the past week, $429 million in net inflows went into Ethereum investment products, and the cumulative year-to-date net inflows stand at about $2.9 billion, marking a significant increase from last year." The report explained that, in this context, decreasing exchange supply and an increase in staking have created upward pressure on Ethereum’s price.

Moreover, CoinDesk noted that Robinhood’s own Layer 2 blockchain is also having a positive impact on Ethereum investor sentiment. On this day, Robinhood announced it is developing its own Layer 2 blockchain using Arbitrum (ARB) rollup infrastructure. This initiative is expected to support Ethereum staking, tokenized stock trading, and perpetual crypto futures trading. CoinDesk evaluated, "Robinhood’s decision to build its Layer 2 solution on the Ethereum rollup ecosystem showcases Ethereum’s scalability."