SEC Chair Raises Cautionary Statements
The Chair of the US Securities and Exchange (SEC), Gary Gensler, has issued cautionary statements to the crypto sector, casting doubt on the possibility of Ether obtaining approval for an ETF similar to Bitcoin. Despite this, Ether has continued to surge and has reached its highest point since May 2022. Interestingly, the approval of 11 Bitcoin ETF proposals has also led to growth in Ethereum-based projects.
Ethereum-Based Projects Experience Growth
According to analysis from Santiment, projects built on the Ethereum platform have experienced significant growth in market capitalization following the SEC’s approval of Bitcoin ETFs in the United States. This growth comes after years of rejections from the SEC. Santiment states that “Ethereum-based projects were some of the bigger beneficiaries in market cap growth following the SEC’s 11 ETF approvals.”
Ether has seen a 5% jump, reaching $2,670, its highest level in 20 months. In addition, ENS (the native token of Ethereum Name Service) increased by nearly 25%, pushing its weekly gains to over 86%. ENS is currently trading at $25.96.
The strong performance of Ethereum-based projects indicates increased optimism in the ecosystem, even without clarity on a spot Ether exchange-traded fund (ETF). Approvals for spot Ether ETFs are expected to be decided starting in May, with major players like BlackRock and Grayscale awaiting approval.
Ethereum Shows GitHub Momentum
Developers in the Ethereum ecosystem have shown resilience and confidence. According to Santiment’s analysis, Ethereum ranks third in terms of development activity on GitHub among several ERC-20 crypto assets. This demonstrates developer commitment and confidence in Ethereum’s potential success.
Examining GitHub activity is a valuable metric for assessing ICOs and crypto projects, as developers invest their time and resources in these projects. The high level of developer activity on Ethereum ahead of a potential spot in an Ether ETF indicates positive sentiment among developers.
Hot Take: Ethereum’s Growth Amid SEC Caution
Despite cautionary statements from the SEC Chair, Ethereum has experienced significant growth, reaching its highest point in nearly two years. The approval of Bitcoin ETFs has also led to increased market capitalization for Ethereum-based projects. This demonstrates optimism and confidence in the ecosystem. While the approval for an Ether ETF may not be as straightforward as it was for Bitcoin, there is still favorable market conditions for such an offering. Additionally, the strong GitHub activity within the Ethereum ecosystem further highlights developer confidence in the project’s potential success. Overall, Ethereum continues to show resilience and growth amidst regulatory uncertainty.
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