Ethereum Aims For $10,000, Driven By 2 Key Factors, According To Experts
07 März 2024 - 9:00PM
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Ethereum is emerging as the vanguard for a revolutionary financial
system. Advocates of the second most valuable blockchain extol the
virtues of smart contracts, envisioning a future marked by market
transparency, tokenized funds, and expeditious settlement times. At
the time of writing, Ether was trading at $3,780, up 2% and 8% in
the daily and weekly timeframes, data from Coingecko shows. Related
Reading: Don’t Miss Out: XRP Bull Flag Signals Explosive Price
Movement Ethereum’s Untapped Institutional Potential Experts argue
that Ethereum is yet to undergo its institutionalized hype cycle,
lagging behind the fervor witnessed by Bitcoin. Robby Greenfield,
the visionary co-founder and CEO of Umoja Labs, foresees a
significant uptick in institutional interest in Ethereum,
particularly fueled by the impending Bitcoin halving and the
cascading inflows from Bitcoin ETFs. Greenfield’s bold prediction
places Ethereum on a trajectory to narrow the gap with Bitcoin’s
gains, asserting that the cryptocurrency could surpass the $10,000
milestone this year. Institutional investors, he believes, will
play a pivotal role in propelling Ethereum to new heights, bringing
about a surge in buying pressure. ETH price action in the last
week. Source: Coingecko Regulatory Crossroads: The SEC’s Stance On
Ethereum ETFs While optimism runs high, the path to Ethereum’s
ascendancy is not without regulatory hurdles. The US Securities and
Exchange Commission, led by Chair Gary Gensler, may adopt a
cautious approach toward approving an Ethereum ETF, unlike the
relatively smoother approval process witnessed with Bitcoin ETFs.
Gensler’s hesitance stems from a history where the SEC reluctantly
gave the nod to Bitcoin ETFs after a legal battle with Grayscale.
Total crypto market cap is currently at $2.456 trillion. Chart:
TradingView.com The SEC is set to scrutinize Ethereum ETF
applications, including those from financial giants BlackRock and
Fidelity, in May. Despite industry expectations, the approval odds
vary, with Polymarket estimating a 43% likelihood and JPMorgan
offering a more optimistic 50% chance. Ethereum’s Catalyst: The
Dencun Upgrade JPMorgan highlights a potential catalyst for
Ethereum’s growth—the Dencun upgrade. Crafted to enhance
scalability by reducing costs for various rollup solutions, this
upgrade facilitates the batching of crypto transactions into
smaller data chunks settled on the Ethereum network. Unlike
Bitcoin’s programmed scarcity with a capped token supply of 21
million, Ethereum’s supply remains infinite, presenting a unique
dynamic in the crypto landscape. Eugene Cheung, Bybit’s head of
institutions, underscores the positive implications of the Dencun
upgrade for Ethereum supporters. Related Reading: Super Tuesday
Crypto Craze: Biden-Related Memecoin Stuns Markets With 5,000%
Surge With layer 2 solutions built on top of Ethereum, the
blockchain is evolving into a settlement layer for a novel digital
infrastructure spanning gaming, trading, and investing. In the eyes
of some, the looming decision on Ethereum ETFs is just the opening
act. Bloomberg ETF analyst Eric Balchunas dismisses an Ethereum ETF
as “small potatoes,” characterizing it as an underwhelming prelude
to more substantial developments within the crypto sphere. Featured
image from Pexels, chart from TradingView
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