Cryptocurrency ether, the second largest digital property, is struggling to match the meteorite growth of its elder brother bitcoin. In this blog post, we include the challenges facing Ether, its recent performance and important roles, which can play ETF approval to shape our future.
Ether struggle to keep pace with bitcoin
Ether is currently lower than the fifth of the $ 2.7 trillion crypto market. Although it has not performed poorly, its growth is overshraded by bitcoin. In the first three months of 2024, Ether saw a slight 53% increase compared to the impressive 65% of bitcoin. Despite reaching an all -time high of $ 4,867.60 in November 2021, Ether is currently trading around $ 3,612 showing a downfall of 26%.
Effect of recent technological upgradation of atherium
Ethereum, the blockchain network underlying ether, has recently passed by a technological upgradation known as Denkun upgrade. The objective of the upgrade is to reduce the transaction fee within the atherium ecosystem. However, unlike the enthusiasm around the upcoming “Halling” of bitcoin, designed to slow down the coin supply, Denkun upgrade created barely a wave in the Crypto community. After the upgrade, the ether dropped 12%, highlighting the market trend “selling the fact”.
SEC decision on Ether ETF
The fate of Ether is closely linked to its stance on the US Securities and Exchange Commission (SEC) and Spot Ether Exchange-Trade Fund (ETF). Institutional demand for ether is much lower than bitcoin. The approval and later launch of the US Spot Bitcoin ETFS increased the institutional interest and contributed to the record height of bitcoin. Now, everyone’s eyes are on Ether ETF, with the filing of Vanek waiting for a decision on 23 May. Standard Chartered Bank has predicted that the US Ether ETFS approval may reach $ 8,000 and $ 14,000 by the end of 2024 and $ 14,000 by the end of 2025.
Ambiguity
The legal status of the ether remains unclear. While SEC has declared bitcoin a commodity, it has not given a definite decision on Ether. Unlike bitcoin, which operates on the “proof-of-work” blockchain, the ether uses a “proof-of-set” blockchain. Users can earn yield by stopping their ether tokens, potentially classified it as protection. Unlike the decentralized ethos of cryptocurrency, strict disclosure rules may apply.
Conclusions: Ether uncertain path forward
The journey of Ether remains uncertain. Lack of recognition of names among non-stable investors is a hindrance in its development. SEC’s decision on Spot Ether ETF will be important. Lawyers and industry experts expect vigilant regulatory moves, given the ambiguity around the legal status of Ether. As the Crypto community waits for the May 23 decision, the fate of Ether hangs in the balance.
In summary, ether struggle to keep pace with bitcoin, the impact of recent upgrades and the regulatory decisions on ETF will shape its future. Can it overcome these challenges and reach the new all-time high.
Disclaimer: This blog post is only for informative purposes and does not form financial advice. Readers should conduct their research before taking any investment decision and consult with professionals.
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