Cryptocurrency experienced a second wave of growth since July, with its value nearly doubling. It's possible that there's still room to invest.
In the ever-evolving world of cryptocurrency, Ethereum has been making headlines recently. Here's a roundup of the key factors driving its growth.
Lower-than-expected inflation and encouraging comments from Federal Reserve Chairman Jerome Powell have increased speculation about a September interest rate cut, which, combined with a push towards risk assets, has propelled Ethereum close to its all-time high from November 2021.
Ethereum, the second-largest cryptocurrency, has seen a significant surge in value since July 1, 2023, nearly doubling in less than two months. This growth trend in demand for Ethereum can drive the price of the coin to new all-time highs.
The growing trend towards stablecoins and tokenizing assets, including stocks, bodes well for the future of Ethereum. Its blockchain, the biggest and best-known public blockchain, is the most widely adopted for smart contracts, suggesting prolonged growth in demand for Ethereum.
Several companies have announced strategic Ethereum treasuries, similar to Strategy's Bitcoin treasury. One of the companies likely to establish the next large Ethereum treasury is BitMine Immersion (BMNR), which currently holds 1,523,373 ETH and aims to acquire 5% of all ETH to capitalize on Wall Street and AI-driven blockchain transformation, especially on the Ethereum network.
The SEC Chairman, Paul Atkins, announced "Project Crypto," aiming to provide more investor-friendly regulations for cryptocurrency. This move could further boost Ethereum's growth.
Additionally, spot Ethereum ETFs have received regulatory approval and started trading on U.S. exchanges. As of now, Ethereum ETFs have seen $12 billion of net inflows since July and hold roughly $22 billion in assets. Despite the significant growth, the amount held by Ethereum ETFs is only 15% of the amount held by Bitcoin ETFs, suggesting strong demand for the new ETFs.
The GENIUS Act has become law, clarifying regulations on Ethereum and stablecoins. This legislation provides a clearer path for the continued growth and development of Ethereum.
However, it's important to note that the price of Ethereum, like all cryptocurrencies, is based on supply and demand. Despite doubling in less than two months, there's a lot of growth left for Ethereum. Only a handful of companies have announced corporate treasuries using Ethereum, leaving room for larger companies to join.
In conclusion, the combination of regulatory clarity, increased institutional interest, and ongoing network upgrades make Ethereum an exciting investment opportunity for the future.
