High expectations from Altcoins as Ethereum ETF Approval nears

The launch of the Spot Ethereum ETF will be a boom time for altcoins due to their association with Ethereum. The crypto market is currently undergoing a consolidation phase, and altcoins show mixed responses from investors. 

Experts in the digital asset market expressed the belief that the altcoin boom won’t occur due to market uncertainty. Two available key metrics suggest the possibility of another phenomenon, and investors have abstained from investing in altcoins following the recent market downturn.

A huge portion of the institutional investors sold off their altcoin holdings the previous week, and the whale paid $75 million to purchase Ethereum and other tokens belonging to the Ethereum family. The Spot Ethereum ETF approval has resulted in a downward trend in the global cryptocurrency market. 

The Securities and Exchange Commission’s delay in approval is a matter of concern among investors. The whale generated a net profit of $2.87M by earning over $7.29M on ETH. The whales’ actions align with the sentiment of a small number of traders who anticipated that the majority of altcoins had reached their cycle highs.

Altcoins are experiencing a market boom similar to the bull cycle of 2020-2021. Changes in the crypto market are responsible for the current market trend, and the launch of the Bitcoin exchange-traded fund is the most anticipated event.

The total market cap is on an upward movement, and cryptocurrency investors worldwide are happy with the latest development. The time has finally come for institutions and retailers to make their massive entry into the cryptocurrency market. According to industry reports, the MVRV (market value to realized value) is low.

The recent MVRV chart showcases some altcoins, mostly Ethereum-based ones. People often perceive this trend as a potential bullish reversal signal, predicting the launch of spot Ethereum ETFs before the end of July 2024. The ETF inflow is a manifestation of a rally in Ethereum, which is closely associated with altcoins in the ecosystem. 

The spike across several altcoin prices testifies to this recent market trend, and the performance of spot ETFs is not up to par. The latest trend will ultimately lead to a headwind for numerous Ethereum-correlated altcoins.

Altcoin is an improved version of cryptocurrency, and it is often less expensive than Bitcoin. Altcoins are non-Bitcoin cryptocurrencies that employ a variety of consensus mechanisms to validate transactions and create new blocks.

Advertisement

It is impossible to anticipate the future of altcoins, and it is certain that they will endure in the future. Altcoin is an effective solution to the limitations of existing cryptocurrencies, and Litecoin is the very first altcoin. The consensus mechanism used by Altcoin is entirely different from the one used by Bitcoin. Ether is another prime altcoin, and it is the creative brainchild of Vitalik Buterin and a few others. Payment tokens, stablecoins, utility tokens, and memecoins are the most common types of altcoins.

Harsh Chauhan

Harsh Chauhan is an experienced crypto journalist and editor at CryptoNewsZ. He was formerly an editor at various industries and has written extensively about Crypto, Blockchain, Web3, NFT and AI. Harsh holds a Bachelor of Business Administration degree with a focus on Marketing and a certification from the Blockchain Foundation Program. Through his writings, he hold the pulse of rapidly evolving crypto landscape, delivering timely updates and thought-provoking analysis. His commitment to providing value to readers is evident in every piece of content produced.

Related Articles

Back to top button