Fri. Feb 23rd, 2024

Ethereum Network in the Spotlight

• The Ethereum Network has had a successful quarter, with Liquid staking, regulatory clarity, and fiat interest driving its dominance.
• ETH’s market cap grew 3% QoQ, while other L1s experienced an average decline of 23%.
• With ETH’s overwhelming self-custody and other factors pushing it towards $2K in Q3, it could be the next candidate for a spot ETF.

Liquid Staking Protocols and DeFi Attention

The meme coin craze of 2021 has been instrumental in propelling the Ethereum Network to success this quarter. Liquid staking protocols have also gained significant traction within the Ethereum ecosystem – with over 50% of ETH stake now being held as liquid assets. This has enabled withdrawals from staking pools that reduce risk, contributing to robust growth on the network.

ETH Price Action: “Boring” Yet Bullish?

ETH prices have been relatively quiet since dropping from their mid-April highs of $2,100. Despite its current price tag of just under $1,890 on July 21st, there are multiple on-chain factors that suggest that ETH could reclaim this psychological level soon enough. For instance, Santiment reports that investors find ETH’s price action “boring” compared to more volatile altcoins like XRP – indicating its potential for a bullish breakout in Q3 and beyond.

BlackRock ETF Filing Could Prove Beneficial for Ethereum

The recent BlackRock filing for a spot Bitcoin ETF also raised speculation about Ethereum’s future standing among investors. Given the successful quarter so far and ETH’s relative regulatory immunity compared to other coins’, it stands as one of the top contenders for a spot ETF if approved by regulators.

Conclusion
Overall, Q3 looks promising for Ethereum investors as numerous factors come together to support strong growth on the network. With liquid staking protocols leading the way and regulatory clarity potentially opening up new opportunities (i.e., an ETF), all signs point to further success ahead for Ethereum in 2021 and beyond!

By admin