The recent approval of Ethereum (ETH) spot exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) has sparked a surge in the cryptocurrency’s price, with ETH trading above $3,900 as of May 27, 2024.
This bullish trend has been fueled by the anticipation of significant inflows into the newly-approved ETFs, as well as increased accumulation by both institutional and retail investors.
TLDR
Ethereum (ETH) price has surged above $3,850, sparking hopes of a bullish trend following the approval of ETH spot ETFs by the US Securities and Exchange Commission (SEC).
The top 1,000 Ethereum wallets have accumulated 510,000 ETH, worth approximately $1.95 billion, within 5 days of the ETF approval.
Analysts predict that ETH could reach $4,500 or even $6,000 in the coming months, potentially mimicking Bitcoin’s 70% price increase after the approval of BTC spot ETFs.
Decentralized finance (DeFi) total value locked has returned to its highest level in two years at $117 billion, with 60% locked on the Ethereum network.
Retail investors are also accumulating ETH, although network growth has declined, suggesting new users are hesitant to buy at the current price.
Data from Santiment reveals that the top 1,000 Ethereum wallets have accumulated 510,000 ETH, worth approximately $1.95 billion, within just 5 days of the ETF approval.
This massive influx of investment has led analysts to predict even further price increases, with some suggesting that ETH could reach $4,500 or even $6,000 in the coming months.
The potential for such substantial growth is not unprecedented; when Bitcoin (BTC) spot ETFs were approved in the United States, the cryptocurrency’s price surged more than 70% to an all-time high within two months.
If Ethereum were to follow a similar trajectory, it could potentially reach a new all-time high of around $6,000 by the end of July 2024.
The impact of the ETH spot ETF approval has not been limited to the cryptocurrency’s price.
Decentralized finance (DeFi) total value locked (TVL) has also returned to its highest level in two years, reaching $117 billion, with 60% of that value locked on the Ethereum network.
Ethereum layer-2 networks are nearing a collective all-time high in TVL, currently sitting at around $47 billion.
While institutional investors have been leading the charge in ETH accumulation, retail investors have also shown significant interest in the cryptocurrency.
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