With its market value, the world’s largest altcoin, Ethereum (ETH), has recently shown strong performance by rising above the $3,700 level and increasing by more than 10% over the past week. According to current data, ETH trades at $3,704 with a market value of $444 billion, indicating a significant increase of 61% since the beginning of the year.
Spot Ethereum ETF Uncertainty Continues
Market observers note that the recent price increase of Ethereum‘s ETH is primarily fueled by speculation surrounding the potential approval of Ethereum-based spot exchange-traded funds (ETFs) in the U.S.
Investors are closely monitoring developments, anticipating a potential price surge for ETH if the U.S. Securities and Exchange Commission (SEC) approves spot Ethereum ETFs that directly hold the altcoin. Major investment firms like BlackRock and Fidelity Investments have applied for such funds, but uncertainties regarding approval persist.
The SEC’s previous decision to approve spot Bitcoin ETFs was influenced by the correlation between CME Bitcoin futures and the cryptocurrency’s price movements and was deemed sufficient to detect fraudulent activities and market manipulation. Similarly, according to ETF analyst James Seyffart at Bloomberg, Defiance Investments has applied to the SEC to introduce a 2x leveraged Ethereum futures ETF, which may potentially start trading by the end of June.
Strong Performance Reflected in ERC20 Altcoins
According to the latest data provided by on-chain analysis provider Santiment, Ethereum outperformed many assets in the cryptocurrency market at the beginning of the week, with ERC20 altcoins showing strong performance. In the past 7 days, ERC20 altcoins such as TON (up 21%), LDO (up 12%), and ENA (up 12%) have recorded an impressive average growth of 8.1%.
Furthermore, ERC20-based NFTs have also started to attract attention and rise after a relatively quiet period. Discussions continue regarding concerns about network congestion and high transaction fees, as well as Ethereum’s growth potential.
