Ethereum Surges 20%, Lifts BLUR and BONK Gain Above 20%
The Ethereum ecosystem is riding on the renewed belief that the US Securities and Exchange Commission (SEC) will likely approve the spot Ethereum exchange-traded funds (ETFs). The optimism triggered the ETH rally by 20% in the process, lifting other cryptos in the network, including Arbitrum (ARB), Blur (BLUR), Bonk (BONK), and Optimism (OP).
Ethereum Leads BLUR and BONK 20% Rally
The Ethereum rally is riding on the optimistic rumors of a SEC turnaround, leaving analysts to predict likely approval of the Ethereum spot ETFs. The optimism fueled market-wide gains catapulted by a surge in the Ethereum ecosystem, with ETH price skyrocketing 20% to test $3,710.31 in the last 24 hours, as per GoinGecko data.
The optimistic mood spread across Ethereum sister tokens ARB and OP to realize an 18% gain on Monday, May 20. The market-wide is yet to slow down, with Optimism still 11.6% up to exchange hands at $2.82, a slight dip from $2.94 per CoinGecko.
The rebound spreads to ARB, up by 18% to test $1.15, and BONK’s 25.5% rise to exchange hands at $0.00003162, translating to $2.092 billion. The Blur NFT marketplace governance token BLUR shares in the uptrend with a 19.6% gain to $0.4261 per CoinGecko.
The optimism spread across the crypto industry except for Gala Games (GALA), whose token dipped by 5% amid the revelation of a $240M exploit. Dogecoin (DOGE) and BNB rallied 8%, trailing the Ethereum surge in the top ten crypto ranked by CoinGecko data.
The market-wide resurgence has seen Solana (SOL) peak above $188. Solana is 3% up to $183, lifting the seven-day gains to 25.6%, as per CoinGecko. Avalanche (AVAX) gains in the widespread resilience, with the token testing a peak of $41 in the past 24 hours, sustaining a 23.4% gain in the seven-day run.
Ethereum Surges as ETF Analysts Upgrade Spot ETF Approval
The sudden rally witnessed at the onset of the week is attributed to the joint prediction by Bloomberg ETF analysts Eric Balchunas and James Seyffart that the SEC could approve the Ethereum spot ETFs just as the major deadline approaches.
The ETF analysts revised their odds of approval upwards from 25% to 75%, citing political pressure. The upgrade is remarkable to the crypto community, given that analysts were more pessimistic from the 50-50 forecast at the onset 2024.
Crypto oddsmakers are shifting their prediction, placing the collective probability of spot ETH ETF approval, realizing a massive leap from 10% to 61%, as per Polymarket.
The optimism of Ethereum has plunged steadily, opening at 76% when the SEC approved the Bitcoin spot ETFs. The Gary Gensler-led Commission has replicated the long, meandering delay witnessed in the race to approve Bitcoin spot ETF.
The prediction by Bloomberg ETF analysts portrays a shift where they appeared pessimistic, citing systematic delays from the SEC. The hopes of the SEC approving the applications dominated the prediction, with some indicating that the Commission would ultimately declare Ethereum security, decisively denying it the commodity status accorded to Bitcoin.
Optimism in Ethereum ETF Approval Fuels Market-wide Rally
The optimistic prediction of spot ETH ETF approval comes days after several democrats onboarded the bipartisan vote with the Republicans to overturn SEC crypto, preventing banks from custodying cryptos. The vote appeared to defy threats by President Biden to veto Resolution 109, which was intended to invalidate Staff Accounting Bulletin (SAB) 121.
US leading crypto exchange Coinbase earlier considered the approval of spot Ethereum ETFs inevitable even though the May 23 deadline was edging closer.
The excellent mood appears contagious across cryptocurrency as nearly all cryptos entered the green zone. Bitcoin is unleashing the rally, with the price retracing to heights witnessed in early April. Bitcoin is exchanging hands at $71,267.99, 6.4% up to lift its seven-day growth to 15.4%, as per CoinGecko data.
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