Wed June 26, 2024
3
min reading by
Luc Jose A.
Ethereum, the second largest crypto by capitalization, sees its network activity explode by 56% in just one week. This renewed interest coincides with the imminent launch of the first Ethereum ETFs, a potentially revolutionary step for the market. As investors hold their breath waiting for the SEC’s final decision, this surge in activity could well herald a dramatic rise in the price of ETH.
A rise in power before the ETF
Activity on the Ethereum network has recently reached impressive heights, marking a 56% increase in the number of active crypto addresses in just seven days. As of June 17, there were 515,610 unique wallets transacting on the Ethereum network. This trend remained relatively stable until June 21, when news of Ethereum ETF S-1 filings by Blackrock and VanEck broke, triggering a significant rally. By the close of June 23, the number of active addresses had climbed to 806,500. And since then, it has yet to fall.
Over the weekend, ETH price consolidated in a tight range between $3,550 and $3,400, likely reflecting investors’ anticipation of upcoming regulatory developments. Indeed, increased network activity is often seen as a warning sign of a major event. In this case, it suggests that crypto investors position themselves in anticipation of the final validation of Ethereum ETFs.
Ethereum ETF approval process progresses smoothly
At the Bloomberg Investment Summit, Gary Gensler, expressed confidence in the approval process for Ethereum spot ETFs, although he did not provide a specific timeline. He noted that the current focus is on asset managers, who must make full disclosures for their registration statements to be effective. Gensler noted that despite the work being done, the process is moving smoothly.
Initially, the SEC chairman had suggested that Ethereum spot ETFs would launch this summer. Some expert analysts, however, believe that Ethereum spot ETFs will launch on July 2.
All told, the anticipation around the launch of Ethereum ETFs and the dramatic increase in network activity demonstrate growing interest in this crypto. Investors are on high alert, awaiting the SEC’s final decision, which could transform the market.
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Luc Jose A.
A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this ongoing revolution.
