Forecast Suggests Ethereum Spot ETF Could Trigger Animal Spirits
A crypto analyst has recently made a bold prediction, hinting that the approval of Ethereum Spot ETFs by the US Securities and Exchange Commission (SEC) could potentially unleash a new wave of enthusiasm in the market called “animal spirits.” This term is often used to describe the irrational exuberance and optimism that can drive financial markets.
On May 22, a crypto analyst known as “the DeFi Villain” posted a forecast on X (formerly Twitter), anticipating a resurgence in the altcoin season bull run following the SEC’s approval of Ethereum Spot ETF. The analyst believes that this approval could release “animal spirits,” leading to increased demand, positive sentiment, and possibly a bull market.
- The analyst highlighted several altcoins that experienced significant rallies in 2021, propelling their market capitalizations from millions to billions in a matter of days and months.
- Dogecoin (DOGE)
- THORChain (RUNE)
- Filecoin (FIL)
- Binance Coin (BNB)
- Axie Infinity (AXS)
- Shiba Inu (SHIB)
Impressive Altcoin Performance in 2021
According to the DeFi Villain, several altcoins saw remarkable growth in market capitalization during the previous bull run:
- Dogecoin observed a 10x increase in one day in January 2021.
- RUNE’s market capitalization surged from $200 million to $5 billion in just five months.
- Filecoin almost reached Ethereum’s current market capitalization, jumping to nearly $400 billion.
- AXS saw a surge from $200 million to $10 billion, with FDV peaking at $43 billion.
- BNB witnessed an 8x pump in 20 days, reaching $50 billion from $6 billion.
- Shiba Inu surged from $4 billion to $40 billion in less than a month.
- ETC rose from $600 million to $17 billion in five months.
These substantial surges during the 2021 bull run highlight the potential altcoins have in the crypto market and the significant growth they can achieve when the altcoin season takes off. DeFi Villain predicts that meme coins could witness another strong rally to new highs in the current market cycle.
SEC’s Stance on Ethereum Security Classification
Despite previously implying that Ethereum could be considered a security, the US SEC’s recent approval of Ethereum Spot ETFs indicates a shift in their classification. The SEC has recognized Ethereum as a non-security, conflicting with their previous statements.
Paul Grewal, Coinbase’s Chief Legal Officer, pointed out this discrepancy, stating that if Ethereum, without a contractual agreement, is no longer deemed a security, then Bitcoin, which operates similarly, should also be considered a non-security. Grewal raised concerns about the classification of 12 other cryptocurrencies compared to Ethereum and Bitcoin and the SEC’s inconsistent regulatory approach to different crypto assets.
Sources
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Hot Take: Embrace the Potential of Altcoins!
As the crypto market continues to evolve, the approval of Ethereum Spot ETFs and the classification of Ethereum as a non-security highlight the dynamic nature of the industry. Keep an eye on altcoins and their potential to surge, showcasing the exciting possibilities within the crypto space. Stay informed, stay engaged, and embrace the opportunities presented by altcoins in the market!
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