Cryptopolitan reports a significant shift in the cryptocurrency market as institutional investors increasingly favor Ethereum and Solana over Bitcoin. This trend stems from new investment products that facilitate institutional cryptocurrency purchases.
The amount of Ethereum (ETH) available on exchanges has declined to 8.97 million coins, marking the lowest level since November 2015.
Ethereum ETFs are not in particular demand from investors compared to Bitcoin ETFs. However, the situation may change when exchange-traded funds have ETH staking enabled, Robert Mitchnick of BlackRock believes.
The Ethereum Foundation announced the relaunch of the Holesky test network after it was disrupted by the Pectra update in February.
Standard Chartered Bank has drastically revised its estimate of Ethereum's price by the end of this year. The experts' estimate was reduced by 60% from 10,000 to 4,000 dollars at once. The bank's decision came as a result of growing concerns about Ethereum's position in the market.
Last week saw mass outflows from Bitcoin and Ethereum ETFs initiated by investors due to the global uneasiness that has been dominating the market recently, U.Today reports.
As reported by Glassnode, on Sunday, the daily number of active addresses engaged in Ethereum transactions fell to 361,078, the lowest in more than a year. The plunge in activity suggests lower activity in the blockchain, which makes the asset more inflationary.
After two questionable tests of Ethereum's upcoming Pectra update, the project's top developers have decided to create a new testnet in order to provide a final demonstration of the code before deployment.
The U.S. Securities and Exchange Commission (SEC) has acknowledged receipt of a proposal from Franklin Templeton to create an Ethereum ETF that includes staking.
Bloomberg Intelligence analyst Mike McGlone commented on the current slump of the leading cryptocurrencies, Bitcoin and Ethereum. In his opinion, the prospects for the growth of risk assets in the US this year are unfavorable.
Ethereum is the world's second largest cryptocurrency after bitcoin. It allows creating and managing smart contracts and decentralized platforms. The coin is actively used in the blockchain, and is also popular in the NFT, DeFi, and other digital services.
Major factors that determine the value of ETH include:
The liquidity of Ethereum is supported by its extensive application within the financial sector and across different blockchain projects.
Moreover, an extensive ecosystem of NFTs, decentralized exchanges, and new digital solutions creates a stable interest in the cryptocurrency.
Forecasting the ETH price is a complex task, as it is formed under the influence of many factors. For successful trading and investing, it's important to take into account regulatory changes and analyze network activity.
