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These 3 Cryptocurrencies Could Explode With Ethereum ETF Approval!
4h30 ▪ 6 min read ▪ by Luc Jose A.
The recent approval of Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC) paves the way for broader institutional adoption and greater exposure of digital assets to traditional investors. Since the successful introduction of Bitcoin ETFs earlier this year, all eyes have been on Ethereum, the second largest cryptocurrency by market capitalisation. Now that Ethereum ETFs have received the green light, the market is buzzing, anticipating a new wave of massive investments. This new investment opportunity could transform market dynamics and provide significant benefits not only to Ethereum but also to many other cryptocurrencies closely linked to its ecosystem. In this article we will explore the three cryptocurrencies best positioned to benefit from this Ethereum ETF approval.
Ethereum (ETH)
Ethereum, the second largest cryptocurrency by market capitalization, has already seen a dramatic rise since the beginning of the year and also in recent days. Currently, the price of ETH is approximately $3,801.94, with a market capitalization of nearly $456 billion and a 24-hour trading volume of more than $10 billion. Despite this impressive growth, the recent approval of Ethereum ETFs by the SEC opens the door to an even more significant increase in the value of Ethereum.
The approval of ETFs means that institutional investors, who were previously reluctant to enter the cryptocurrency market due to its complexity and perceived risks, can now invest in Ethereum through traditional, regulated financial channels. This will significantly increase the potential demand for ETH. The legitimacy brought by the SEC approval will increase investor confidence in Ethereum, thus stimulating interest and purchasing of ETH.
The influx of new capital into Ethereum through ETFs will also improve market liquidity. Better liquidity means that transactions can be executed more quickly and with less volatility, which is attractive to large investors. This increase in liquidity can stabilize the price of Ethereum in the short term, while creating a solid foundation for continued growth.
Polygon (MATIC)
Polygon is a layer 2 scaling solution for Ethereum. Currently the price of the Polygon cryptocurrency is around USD 0.7225 with a market capitalization of USD 7.15 billion and a 24-hour trading volume of almost USD 175 million. Polygon has already demonstrated notable growth as a scalable platform, attracting the attention of blockchain developers and users.
The SEC’s recent approval of Ethereum ETFs has the potential to catalyze a new wave of Ethereum adoption and usage. As demand for Ethereum increases, scaling solutions become crucial to handle the growing volume of transactions on the network. Polygon, as the leading layer 2 solution for Ethereum, is particularly well positioned to take advantage of this dynamic.
Polygon improves the scalability of Ethereum by enabling faster and cheaper transactions, which is essential to maintaining the efficiency of the Ethereum network in the face of growing demand. With the expected influx of capital following ETF approval, Ethereum users will look for ways to reduce transaction costs and improve transaction speed, thus increasing demand for Polygon.
Additionally, Polygon benefits from its compatibility with the Ethereum blockchain, allowing developers to easily deploy decentralized applications (dApps) and DeFi projects on its platform. This compatibility already attracts a multitude of projects, and the growing interest in Ethereum due to ETFs could reinforce this trend, attracting even more developers and users to Polygon.
Uniswap (UNI)
Uniswap, the leading decentralized trading (DEX) platform on Ethereum, plays a crucial role in the DeFi ecosystem by allowing users to trade cryptocurrencies directly without going through a centralized exchange. Its cryptocurrency UNI is currently priced at $11.40, with a market capitalization of $6.83 billion and a 24-hour trading volume of nearly $473 million.
With the SEC’s recent approval of Ethereum ETFs, Uniswap is in an advantageous position to benefit from the influx of capital and increased interest in Ethereum. ETFs make buying Ethereum more accessible to institutional investors, which should increase demand for ETH. This increase in demand will also lead to an increase in transactions on Ethereum, which directly benefits decentralized trading platforms like Uniswap.
As the most popular decentralized trading platform, Uniswap will likely see a significant increase in trading volumes. The higher the trading volume, the better the liquidity on Uniswap, making operations more efficient and attractive to investors. This could lead to an increase in the value of the UNI cryptocurrency, used for governance and liquidity rewards on the platform.
With the approval of Ethereum ETFs, Ethereum, Polygon and Uniswap are three cryptocurrencies particularly well positioned to benefit from this influx of capital and growing interest in the Ethereum ecosystem. However, the cryptocurrency market is extremely volatile and prices may vary unpredictably. Nothing is very certain!
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Luc Jose A.
Graduated in Science Po Tolosa and holder of a blockchain certification consultant issued by Alyra, I returned to participate in Cointribune in 2019. Capturing the potential of blockchain to transform numerous sectors of the economy, I have made a commitment to raise awareness and inform the great public about this constantly evolving ecosystem. My goal is to allow anyone to better understand blockchain and learn about the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to convey the latest technological innovations and to put into perspective the economic and social efforts of this revolution in brands.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be relied upon as investment advice. Do your research before making any investment decisions.