Crypto News

Ethereum’s Market Value Rises Over 4% To Nearly $4,000

According to data from Coinmarketcap, Ethereum experienced a significant uptick in its market value, surging over 4% to reach $3,998 per token. 

This upward momentum is particularly noteworthy considering the sluggish performance of traditional equities, with Bitcoin and Ethereum outpacing SP500 returns by 10.0% and 14.7% respectively this week. 

The divergence from traditional markets reinforces traders’ optimism regarding sustained bull markets in the cryptocurrency sphere, which historically exhibit minimal correlation with equities.

Ethereum’s weekly fees exceeded $190 million, translating to an annualized rate surpassing $10 billion for the first time since early 2022. This milestone underscores Ethereum’s enduring significance within the crypto landscape.

Additionally, Ethereum’s fee-burn mechanism has contributed to a reduction in its supply by approximately 33,000 ETH, equivalent to around $125 million, over the course of this week.

Regulatory Developments Around Ethereum ETF

In regulatory developments, Grayscale and Coinbase engaged in discussions with the U.S. Securities and Exchange Commission (SEC) to advance their pursuit of regulatory approval for an Ethereum exchange-traded fund (ETF).

Grayscale seeks to transform its Ethereum ETF into a spot Ethereum ETF, signaling a strategic shift in the cryptocurrency investment landscape.

Recent on-chain reports revealed a notable transaction involving a whale who withdrew 2917 pledged coins of ETH from and subsequently deposited them into Binance, amounting to $11.5 million.

Notably, these funds were initially transferred from Binance three weeks ago, on February 19, 2024, at an average price of $2883. If liquidated, this transaction would yield a profit of $3.05 million, underscoring the dynamic nature of Ethereum trading activities.

Overall, Ethereum’s recent market performance and regulatory developments indicate a continued evolution within the cryptocurrency ecosystem, driven by both market dynamics and regulatory initiatives.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.

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