Why The Ethereum Rally Is More Fundamentally Driven Than Speculative

Ethereum (CRYPTO: ETH) has rallied more than 35% over the last month. The recent move is more fundamentally driven than speculative, Slow Ventures' Jill Gunter said Tuesday on CNBC's "Squawk On The Street."

The Ethereum network is going through an upgrade process that will positively change a lot of the dynamics around the crypto network, Gunter said.

See Also: Ethereum Is Up By 8% Today

Even more importantly, Ethereum is seeing increasing demand in terms of use. There has been a "resurgence of the NFT craze," Gunter said, adding that each time a non-fungible token transaction takes place, a fee payment is made in Ethereum. 

"A lot of it is actually more fundamentally driven and less speculative than one might expect as an outside observer," Gunter said.

Millennials prefer to spend money on experiences, but Gen-Z is spending money on their portfolios via NFTs, meme stocks and more, she said. 

The phenomenon is very real as people gain a sense of social identity and belonging through said purchases, Gunter noted. 

ETH Price Action: Ethereum is up 357.85% year-to-date. 

Ethereum was up 1.06% at $3,377.91 at time of publication.