Ethereum (ETH) maintains its position as the leading cryptocurrency, reaching a 22-month high in trading on Monday. According to CoinGecko, ETH is currently valued at $3,151, surpassing the $3,000 threshold for the first time since April 2022. The cryptocurrency has experienced a 3.5% increase in value since the same time yesterday and has seen an 8% rise over the past week.
Dessislava Aubert, an analyst at Kaiko, informed Decrypt that open interest has recently reached a multi-year high of $7.7 billion, and funding rates are at their highest levels since early January. This indicates a surge in new capital entering the market driven by growing speculative interest and hedging activities.
Ethereum’s network is on the verge of a crucial upgrade scheduled for next month, named “Dencun.” This upgrade aims to address scalability issues by introducing “proto-danksharding,” promising improved speed and cost-effectiveness through layer 2 solutions. Layer 2s aggregate unverified transactions on Ethereum, process them on an external network, and then confirm them back on the mainnet.
Simultaneously, several prominent traditional Wall Street firms are seeking approval for an Ethereum exchange-traded product (ETP). If approved by the Securities and Exchange Commission (SEC), this fund would open the door for traditional investors. Noteworthy names such as BlackRock, VanEck, and Grayscale are awaiting regulatory decisions. Recently, Coinbase, a publicly traded crypto exchange, submitted a comment letter in support of Grayscale’s application for an Ethereum ETF. In January, the SEC approved 10 spot Bitcoin ETFs, which have seen significant popularity and attracted substantial capital inflows.
Ethereum (ETH) remains the leading cryptocurrency, reaching a 22-month high in trading on Monday. According to CoinGecko, ETH is currently valued at $3,151, breaking through the $3,000 mark for the first time since April 2022 last week. It has experienced a 3.5% increase since the same time yesterday and has surged by over 8% throughout the past week.
Dessislava Aubert, an analyst at Kaiko, informed Decrypt that open interest has recently reached a multi-year high of $7.7 billion, and funding rates are at their peak since early January. This indicates an influx of new capital into the market driven by escalating speculative interest and hedging activities.
Next month, Ethereum’s network is poised for a crucial upgrade named “Dencun,” aimed at addressing scalability challenges within the blockchain. The upgrade introduces “proto-danksharding,” promising enhanced speed and cost-effectiveness through layer 2 solutions. Layer 2s, or L2s, consolidate unverified transactions on Ethereum, process them on an external network, and then confirm them back on the mainnet.
Simultaneously, several prominent traditional Wall Street firms are seeking approval for an Ethereum exchange-traded product (ETP). If granted approval by the Securities and Exchange Commission (SEC), such a fund would make the asset accessible to traditional investors. Key players like BlackRock, VanEck, and Grayscale are eagerly awaiting regulatory decisions. Just last week, the publicly traded crypto exchange Coinbase submitted a comment letter in support of Grayscale’s application for an Ethereum ETF.
In January, the SEC approved 10 spot Bitcoin ETFs, which have proven popular, attracting significant capital inflows.