Data projections from K33 have indicated that Ethereum stands to overtake Bitcoin in terms of performance metrics as per the report. The analytical report suggests Ethereum prices may be subjected to the bullish correction following inflows of spot ETH ETFs.
K33’s Ethereum Price Prediction
The report has also suggested that Bitcoin prices may face headwinds stemming from Mt.Gox repayments. The analysts at K33 have suggested that after Ethereum ETF listings, Ethereum prices may gain a boost in the spot markets.
ETFs are set to go live on 8th July 2024. The analysts have likened the ETFs to golden egg for Ethereum price movement and noticed that Bitcoin headwinds are likely to increment. The selling pressure for Bitcoin stems from Mt.Gox repayment to investors.
The trading platform has a Bitcoin reserve of $8.5 billion. As per Vetle Lunde and David Zimmerman report published on 2nd July, the exchange is likely to commence repayments starting the ongoing week.
Ethereum has continued to underperform in comparison to Bitcoin for more than a year. Bitcoin also reported leading gains with a massive inflow of $14 billion from spot ETF listings for the ongoing year.
Ethereum Growth and Spot ETFs
The K33 analysts have further stated that investors should expect Ethereum prices to waver before the launch of spot ETFs. However, there is a high probability of price appreciation following the spot ETH listing.
Analyst Lunde noted that ETFs are a positive catalyst for Ethereum prices with the progression of the ongoing month. He also projected that inflows from Ethereum ETFs are likely to accumulate leading to strengthening ETH prices. Furthermore, he also stated that Ethereum and Bitcoin trading pair as a bargain transaction for long-term investors.
He shared his bullish outlook on ETH with an emphasis on net inflows from spot ETF listings. He further noticed that aggregate inflows from ETF investments into the cryptocurrency may equate 0.75%-1% of Ethereum supply for the last 5 months.
Lunde pointed out that the broader investors have retained an inverse expectation from this projection despite the relative discount of ETH futures to Bitcoin futures. He also quoted the Ethereum and Bitcoin price ratio to be around 1 Ethereum to 0.055 Bitcoin.
However, during the last year, Ethereum prices for 2023 indicated a continuous decline in comparison to Bitcoin. ETH prices reported a yearly low on 0.045 on 24th May. At the same time, the Ethereum price trend in relation to Bitcoin shifted after the SEC announced the decision to list and approve Ethereum ETFs.
The announcement was received as a surprise by analysts who declared that Ethereum and Bitcoin prices propped back to regular ratio of 0.055 as confirmed by TradingView.
Ethereum Decentralized Application Volume Gains 83% Momentum
A report published at the start of June indicated a visible increase in trading volumes for Ethereum-based DApps. The analysts have opined that volumes have increased across the board but one decentralized application accounts for 59.5%. The surge has been attributed to a rise in Ethereum demand in the broader market.
At the same time, Ethereum has become the first blockchain among the top 20 networks to report a rise in volume indicating an 83% increase in comparison to last week. The analysts have also cited the increase in the total amount of deposits into the Ethereum network as one of the reasons for the trading volume hike.
As per data projections from DappRadar, the TVL on Ethereum DeFi decreased by 17.5% during the last week in contrast to the same metric surging on networks such as Solana and Avalanche.
The highest volume was recorded in Balancer app reporting a 422% weekly increase as on 02nd July 2024 with an estimated $40.6 billion. Binance announced on 1st July that Balancer (BAL) has been added to a screening list for further analysis and reconsideration.
The biggest Dapp trading volume generator on the BNB Chain is PancakeSwap and Uniswap attributes 50% of its aggregate trading volume to the Polygon network.
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