Ethereum’s price experienced a 13.5% increase between January 10 and 12, reaching above $2,650 for the first time since May 2022. This rally was primarily attributed to the anticipated approval of spot Bitcoin exchange-traded funds (ETFs), despite Bitcoin itself seeing a 2% decline during the same period. Investors are now debating whether Ethereum can sustain its current market cap of $322 billion.
Over the last 60 days, Ethereum outperformed Bitcoin’s 24% rise with a 27% gain, suggesting significant success potentially due to the direct appeal of spot Bitcoin ETFs to a new customer base. Bloomberg ETF analysts estimate a 70% chance of Ethereum ETF products being approved by May.
Asset managers, including BlackRock, Fidelity, Grayscale, and VanEck, are awaiting a decision on Ethereum ETFs from the U.S. Securities and Exchange Commission by May 23. However, some analysts believe the decision could come sooner given the procedures already in place for Bitcoin.
Considering the notable price impact of spot Bitcoin ETF approvals, Ethereum’s rise could be driven by other factors. Competing cryptocurrencies like BNB and Solana have seen corrections after their rallies, with respective drops of 2% and 3% over the past week.
In the Layer-1 project space, Solana’s momentum has waned following significant drops in SPL token airdrops, including JITO, BONK, and WIF. Meanwhile, BNB’s unexpected 35.7% surge between December 17 and 27 did not coincide with increased network activity. In contrast, Ethereum’s network activity only saw a slight decline, maintaining its lead in the NFT market despite the sector’s downturn from its 2021 peak.