Altcoins
What the Ethereum ETF Means for Altcoins and Meme Coins
The much awaited launch of a spot Ethereum ETF analysts are divided on its impact on altcoins, meme coins and competing layer 1 (L1) blockchains,
A double-edged sword for Altcoins:
The potential influx of new investors attracted to the funds could lead to a “rising tide lifting all boats” scenario, analysts say.
Established altcoins with strong utility functions, like Cardano (CRYPTO: ADA) And Peas (CRYPTO: POINT), which power smart contracts and decentralized applications (dApps), could see significant price increases.
These projects offer real-world solutions and have established developer communities, making them attractive options for investors looking to gain exposure to the broader blockchain ecosystem beyond Ethereum.
However, analysts also warn of a potential “flight to quality”.
New investors, unfamiliar with the intricacies of the crypto space, might prioritize Ethereum’s perceived stability over riskier altcoins.
This could lead to a temporary drop in prices for smaller altcoins, especially those that have difficulty scaling or unclear project roadmaps.
Will Meme Coins benefit?
Same corners, Internet darlings like Dogecoin (CRYPTO: DOGE) And Shiba Inu (CRYPTO: SHIB), constitute a unique case.
Platforms like Binance Square are anticipating a coin frenzy fueled by increased interest in the crypto space.
This could lead to short-term price increases for these highly volatile assets.
However, other analysts believe this may be a short-lived phenomenon.
Meme pieces often lack much utility and rely heavily on social media hype.
As the market matures, investors may prioritize projects with long-term value propositions and proven technologies.
A “top meme corner” could be on the horizon, with only the most powerful meme coins with real-world applications or unique features surviving in the long run.
Read also: Roaring Kitty Return Nets Investors $300,000 Unrealized Profit on Ethereum-Based GME Meme Coin
Will Ethereum surpass Solana?
The rivalry between Ethereum (CRYPTO: ETH) And Solana (CRYPTO: GROUND) for dominance in the smart contract space continues to be a focal point.
The immediate impact of the Ethereum ETF could see the price of ETH surpass all-time highs due to increased investor interest.
However, the playing field could level in the long term if a Solana ETF receives regulatory approval.
Ultimately, the success of both platforms depends on their ability to solve scalability issues.
Ethereum’s upgrade to Ethereum 2.0 promises significant improvements in transaction speeds and fees.
Solana, on the other hand, offers impressive speed and low fees, but faces challenges with network congestion and potential centralization.
Only the platform that can deliver a balance of speed, security, and scalability will truly dominate the smart contract space.
Layer 1 Blockchains: A Potential Resurgence?
Recent difficulties with layer 1 blockchains like avalanche (CRYPTO: AVAX) and Cardano have expressed concerns about their future.
While the ETH ETF may initially draw attention away from these projects, a broader market push could benefit established L1s with unique features.
For example, Avalanche offers high transaction speeds and low fees, while Cardano has a strong emphasis on security and a research-driven approach.
These projects must attract developers and build robust decentralized ecosystems to thrive.
L1s capable of carving out a place in the blockchain landscape, offering real alternatives to Ethereum, are more likely to experience a comeback.
The takeaway: navigating a dynamic market
The arrival of the ETH ETF marks a significant shift in the cryptocurrency market, with potential pros and cons for different sectors.
The focus should be on specific use cases, technological advancements, development roadmaps and community engagement of different projects.
Beyond the immediate impact of the ETF, staying informed of regulatory developments and technological innovations is crucial to navigating the Web3 space.
While meme coins may offer a fleeting thrill, established altcoins and L1s with strong development teams and clear value propositions might be better bets for long-term gains.
These questions and more will be discussed at Benzinga’s conference. The future of digital assets conference on November 19.
Read next: MicroStrategy and Michael Saylor settle $40 million tax fraud lawsuit
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Altcoins
Long-Term Impact of Ethereum ETF on Cryptocurrency Market
Popular crypto analyst Michael van de Poppe has highlighted his altcoin portfolio approach in light of the new Ethereum ETF. In a recent Youtube videoThe analyst explained the measures he would take for this major market event.
The Ethereum ETF was listed on the stock exchange and it took time to get approval and so far there has been no significant change in price. The analyst pointed out that the long-term effect could be quite significant, comparing it to the situation of the Bitcoin ETF where the initial decline was followed by large inflows.
According to Van de Poppe, the Ethereum ETF’s trading volume on the first day of trading was about 25% of the volume Bitcoin ETF He noted that the first day of trading was marked by low inflation, and said there was a net inflow of $150 million to $160 million, which reduced the available supply.
Altcoins are poised for growth
The analyst said that as Ethereum adoption increases in the future, the supply of Ethereum will decrease, which is a deflationary model. Ethereum is up about 15% since the ETF approval, the broader market reaction has yet to happen as several sell-offs have taken place, including the Grayscale Trust.
Van de Poppe also mentioned other important market events, including the end of Mount Gox The process of repaying creditors initially caused tensions in the markets, but had little effect subsequently. It also highlighted the role of macroeconomic factors, which can lead to Fed rate cuts, which can affect markets.
In this regard, looking at van de Poppe’s strategy, he is still keen to trade within the altcoins of the Ethereum ecosystem. He stated that there is a possibility of short-term price fluctuations that may discourage many people, but the long-term still looks good due to the improvement and adaptation that has been made to Ethereum and its environment.
According to the analyst, substantial inflows could propel Ethereum towards new historic highs with estimates ranging from $5,000 to $7,000. Despite the current market fluctuations, he is confident that macroeconomic changes and greater liquidity will be favorable for altcoins.
He explained that his broad approach to altcoins, especially those associated with Ethereum, will be beneficial because the market will react differently to these events. The basis for his optimism comes from the fact that he believes that Ethereum and all associated projects are still extremely undervalued and have the potential to skyrocket as sentiment changes.
Looking ahead and market adjustments regarding the Ethereum ETF and other macroeconomic factors, the analyst remains bullish on altcoins. He suggested investors stay informed and believe that in the ever-changing world of crypto, they will eventually be rewarded.
Altcoins
Altcoins Are Severely Undervalued, Awaiting Ethereum Move | Flash News Detail
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Altcoins
Altcoins Correct Amid ETH Decline, Grayscale Outflows | Flash News Detail
Disclaimer
Disclaimer: Blockchain.news provides content for informational purposes only. Under no circumstances shall blockchain.news be liable for any direct, indirect, incidental or consequential damages arising out of the use of, or inability to use, the information provided. This includes, but is not limited to, any loss or damage resulting from decisions made based on the content. Readers should conduct their own research and consult professionals before making any financial decisions.
Altcoins
Epic Altcoin Rally Expected for August and September
- Crypto analyst predicts massive altcoin rally similar to Q1 2024, urging patience and accumulation.
- Bitcoin’s potential as a reserve asset and its technical patterns suggest that it will drive the rise of the cryptocurrency market.
Captain Faibik, a renowned crypto analyst, has created excitement in the cryptocurrency sector with his latest prediction. He indicated that we are on the cusp of a massive altcoin rally, similar to the one we saw in Q1 2024.
See more
We are on the verge of a massive Altcoin rally, similar to Q1 2024📈
Keep accumulating and hold with patience. (Patience will be rewarded)
The majority of #Altcoins have already hit rock bottom and are about to escape.
In my opinion, August-September is going to be epic for Altcoins.🚀🚀#Crypto pic.twitter.com/cMdHagiaYc
— Captain Faibik (@CryptoFaibik) July 24, 2024
Accumulating and Holding Altcoins: The Path to Potential Profits
He stressed the need to accumulate altcoins and hold them patiently, as it will eventually pay off. According to him, the majority of altcoins have already bottomed out and are about to break it. He believes August and September will be epic months for altcoins.
In a chart posted by Captain Faibik, the overall crypto market cap, excluding Bitcoin and Ether, known as TOTAL3, is approaching the upper boundary of a descending channel pattern.
This context suggests a potential breakout and a significant rally towards the $1 trillion mark. Technically, the decline since mid-March is interpreted as a corrective trend for the value of TOTAL3, signaling a preparation to enter a rally structure.
Bitcoin’s influence and legislative developments suggest good prospects for the future
Furthermore, based on sentiment and technical patterns, Bitcoin, the world’s leading cryptocurrency, appears poised to lead the charge in the cryptocurrency market. Bitcoin’s performance often sets the tone for the market as a whole, and a strong move in BTC could trigger a significant rally in altcoins.
Previously, as we have already said reportedSenator Cynthia Lummis said she plans to introduce a bill at the upcoming Bitcoin conference that would require the Federal Reserve to hold Bitcoin as a reserve asset.
If this law passes, the US will treat BTC as a long-term investment rather than selling huge amounts infrequently, which could disrupt the market.
In addition, asset management firm VanEck has proposed a bold scenario in which Bitcoin Price Could Reach $2.9 Million Per BTC By 2050based on its fundamental outlook. Matthew Sigel, head of digital assets at VanEck, and senior investment analyst Patrick Bush noted that their estimate is based on Bitcoin’s adoption as a global medium of exchange and reserve asset.
As Bitcoin price increases, altcoins are expected to gain popularity, indicating the start of a bullish rally shortly after the BTC halving event.
Meanwhile, at the time of writing, the price of BTC was hovering around $67,007.99up 4.67% over the past 24 hours following a short-term correction.
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