Ethereum price rises on optimism about ETFs
Ethereum price rises on optimism about ETFs
During early trading on May 27th, the price of Ethereum (ETH), the world's second-largest cryptocurrency, confidently broke through the $3,900 mark and headed towards the $4,000 area.
This 4.5% increase in the price of ETH over the past 24 hours is due to optimism that the recent approval of the Ethereum ETF by the US Securities and Exchange Commission could spark a surge in the asset's popularity.
According to CoinGecko, ETH hit an intraday high of $3,931.79 on Monday, posting a weekly gain of 25.2%. It's worth noting that the world's largest cryptocurrency by capitalization, Bitcoin (BTC), gained only 2.3% over the same period.
At the time of writing, Ethereum is trading at $3,908.57.
ETH outperformed Bitcoin (BTC) this week, gaining 27.5% compared to Bitcoin modest 3.8% gain.
This significant weekly movement reinforced the predictions of industry experts, Cointelegraph reported.
DeFiance Capital founder Arthur Cheong predicted in a May 26 post on X that ETH will reach $4,500 before spot ETFs are launched.
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He also conducted a survey that showed nearly half of the 5,800 respondents held less than 25% of their portfolio in ETH, prompting him to comment on the potential underrepresentation of ETH among crypto investors.
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Meanwhile, Anthony Sassano, founder of EtherHub, suggested that Michael Saylor, founder of MicroStrategy (the largest investor in BTC), may invest in ETH within the next year.
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Matt Hougan, IT Director at Bitwise, predicts in a new interview on the Bankless podcast that investor inflows into the ETH ETF will total billions of dollars, pushing ETH past its all-time high of $4,900 reached in November 2021.
At the same time, most analysts believe that ETH's rise has broader implications for the cryptocurrency ecosystem.
According to data by DeFiLlama, the total value locked in decentralized finance (DeFi) protocols has grown to a two-year high of $117 million, with 60% of that amount locked in the Ethereum network.
In addition, Ethereum's Level-2 scaling solutions are approaching a cumulative record high of $47 billion, according to L2beat.
Read also: XRP could be the next crypto ETF
