Analyst Says Approval of Ethereum Spot ETF Will Reignite Cryptocurrency for “Animal Spirits”
One cryptocurrency analyst has made a rather cryptic prediction. Ethereum spot ETF approved The U.S. Securities and Exchange Commission (SEC) may usher in a new wave of “animal spirits.” In cryptocurrency, the term is often used to describe the irrational exuberance and optimism that fuels financial markets.
Ethereum Spot ETF Reignites Animal Spirits
On X (formerly Twitter) post On May 22, a cryptocurrency analyst known as the ‘DeFi Villain’ made a bold prediction, predicting a resurgence in cryptocurrencies. Bull market altcoin season After SEC approval Ethereum Spot ETF. Analysts said the approval could unleash “animal spirits”, leading to new demand and positive sentiment in the market, resulting in a bull market.
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The analyst outlined a long list. altcoin This has done wonders in 2021 and we have experienced an incredible rally. These rallies boosted each market capitalization from hundreds of millions of dollars to billions of dollars in a matter of days and months.
Among the cryptocurrencies highlighted by DeFi Villain, some notable altcoins have recorded massive increases in market capitalization. Dogecoin (DOGE)THORChain (RUNE), Filecoin (FIL), Binance Coin (BNB), Axie Infinity (AXS), Shiba Inu (SHIB), etc.
According to cryptocurrency analysts, Dogecoin witnessed a 10-fold increase in a single day in January 2021. Meanwhile, RUNE’s market capitalization skyrocketed from $200 million to $5 billion in just five months.
One of the most notable increases is: Filecoin Almost to the present. Ethereum market capitalization. Cryptocurrencies jumped by nearly $400 billion during the 2021 altcoin bull market.
Other cryptocurrencies, such as AXS, have seen their market caps skyrocket from $200 million to $10 billion, with their fully diluted value (FDV) exceeding $43 billion at one point. additionally, Binance CoinSilver, which was already worth $6 billion at the start of 2021 and was one of the top 20 cryptocurrencies, witnessed a mega 8x rise in 20 days, reaching a whopping $50 billion in February 2021.
Some popular meme coins include: Shiba Inu (SHIB) It rebounded hard, jumping from $4 billion to $40 billion in less than a month. Ethereum Cash (ETC) also increased its market capitalization from $600 million to $17 billion in 5 months.
This massive surge Bull market in 2021 It highlights the potential of altcoins in the cryptocurrency market and how crazy they can surge as altcoin season approaches and Bitcoin’s dominance shifts to lower cryptocurrencies.
DeFi villains predicted That last leg meme coin This is likely to be “vertical and brutal,” suggesting these volatile cryptocurrencies could have another strong rally that could push them to new highs this market cycle.
Does approval of the ETF invalidate the SEC’s previous security claims?
Over the past few months, American stock exchange Ethereum, the second largest cryptocurrency considered secure. However, following the approval of the Ethereum spot ETF, the SEC finally recognized Ethereum as a non-security.
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Call your regulator about this contradictionPaul Grewal, Chief Legal Officer at Coinbase published If Ethereum, without any “contractual agreements or commitments,” is no longer considered a security by the SEC, then Bitcoin (BTC), which operates similarly without the above agreements, should also be a non-security.
Grewal raised compelling questions about the classification of 12 different cryptocurrencies. Ethereum Bitcoin in terms of SEC’s non-secure treatment. Coinbase CLO disclosed this meaning that 12 different cryptocurrencies are being considered. stock Despite the lack of contractual agreements or commitments, questions are raised about a possible lack of regulatory clarity and regulation from the SEC. Inconsistent regulatory approach to various crypto assets.
Featured image created with Dall.E, chart from Tradingview.com
