Ethereum Could Surprise Markets with a Rally
On May 15, Coinbase Institutional published the following research report: Ethereum (ETH) could see surprising gains in the coming months. Despite underperforming Bitcoin (BTC) and the broader cryptocurrency market this year.
The report states that Ether’s Strong long-term potential due to absence of significant supply-side pressures; Phenomena such as token unlocks or miner divestments often affect other cryptocurrencies.
Analyst David Han highlighted: Increasing influence of staking and layer 2 (L2) solutions on ETH liquidity; This further strengthens our market position.
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ETH’s central role in DeFi is expected to remain secure for the following reasons: Widespread adoption of the Ethereum Virtual Machine (EVM) and innovation in L2. EVM allows developers to create smart contracts and support widespread adoption of DeFi applications, while L2 solutions built on Ethereum improve scalability and reduce data bottlenecks.
The report also discussed: Impact of possible US approval of spot Ether exchange-traded funds (ETFs):
We believe the market is underestimating the timing and probability of potential approval, which leaves room for surprise on the upside.
The first potential approval deadline for a spot Ether ETF is May 23, 2024. In response to the possibility of an initial rejection, Coinbase expressed optimism that the lawsuit could eventually lead to approval.
Overall, the report highlights the importance of Ethereum’s unique properties and the critical role a potential ETF approval will play in shaping its future market trajectory.
With a master’s degree in Economics, Politics, and Culture in East Asia, Aaron wrote a scientific thesis analyzing the differences between Western capitalism and collective capitalism after World War II.
With nearly 10 years of experience in the fintech industry, Aaron understands all of the biggest issues and challenges cryptocurrency enthusiasts face. He is a passionate analyst who delivers data-driven and fact-based content as well as speaking to both Web3 natives and industry newcomers.
Aaron is our go-to guy for all things digital currency. With a huge passion for blockchain and Web3 education, Aaron is working to transform the space as we know it and make it more accessible to complete beginners.
Aaron has been quoted in several popular media outlets and is a published author himself. In his spare time, he enjoys researching market trends and looking for the next supernova.
