Ethereum Crosses $3,000 Following ‘Surprising Change’ in Investor Sentiment
As Bitcoin continues to soar, setting new all-time highs, its closest rival, Ethereum, hasn’t gained much momentum, but that could change as investors feel more bullish on the coin.
On Saturday, ETH crossed $3,000 for the first time since early August. Notably, it traded as low as $2,367 a day before the US Election. According to Nick Forster, the founder of decentralized finance (DeFi) protocol Derive, the rally follows a ‘surprising change’ in investor sentiment on Ethereum.
Analyst Anticipates Growth in Ethereum DeFi Under Trump’s Government
Forster argues that many investors are now optimistic that the Ethereum DeFi space could flourish again as US regulators adopt a collaborative approach under Donald Trump’s administration.
Over the two years, the US watchdogs led by the Securities and Exchange Commission (SEC) have gone after several Ethereum-based DeFi projects, making them less appealing to investors. However, Trump’s promise to replace the SEC leader Gary Gensler with a crypto-friendly Chair could boost growth in the DeFi space.
DeFi Tokens Mirror Ethereum’s Performance
It is worth highlighting that Ethereum DeFi tokens have mirrored ETH’s rally in the past two days. For instance, crypto lending protocol Aave has seen its token surge 26% to $183 as that of the Ethena DeFi project hits $0.50 following a 34% rally.
On Sunday morning, the Head of Strategy at Kraken, Thomas Perfumo, said if Trump stops enforcement actions against DeFi projects, ETH and all ERC-20 tokens will likely benefit. He added that the creation of a clear regulatory framework could help Ethereum cross its peak price of $4,876, recording a new all-time high.
Investor Interest in Ethereum Spot ETFs in Surging, Claims Kraken Executive
Perfumo notes a positive change in investor sentiment on Ethereum spot ETFs, which started trading in July after the SEC’s approval in May. He says these new investment products have recorded net inflows for three consecutive days for the first time since their inception. He adds that the latest trend signals a growing investor interest in Ethereum ETFs, which had a relatively bad start.
In comparison, Bitcoin spot ETFs, approved in January, have performed exceptionally well, boosting BTC’s price. According to CoinGlass data, investors have poured over $6 billion into these funds in the past seven days.
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