Ethereum has demonstrated notable performance surpassing Bitcoin following the approval of spot Ethereum ETFs by the SEC. The surge in Ethereum's network activity and the anticipation surrounding the spot Ethereum ETFs have contributed to its recent success. While Ethereum faced a decline in mid-March, it regained momentum in mid-May driven by the potential approval of ETFs in the U.S.
Despite starting the year behind Bitcoin, Ethereum surpassed the leading cryptocurrency after the SEC greenlighted spot Ether ETFs on May 23. Since May 15, ETH has witnessed a remarkable surge of around 30% compared to BTC's 9% gain in their USD pairs.
Why Ethereum is Outperforming Bitcoin:
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Network Activity: The rise in network activity has played a pivotal role in Ethereum's outperformance.
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Spot Ethereum ETFs: The excitement surrounding the launch of spot Ethereum ETFs has fueled Ethereum's momentum.
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Price Comparison: Ether has surged 23% in the last 10 days, overshadowing Bitcoin and other top layer-1 tokens.
The ETH/BTC ratio climbed from May 17, reaching a two-week high of $0.05854 on May 23, marking a 31% increase. The technical analysis indicates a bullish divergence in the ETH/BTC ratio, suggesting a trend reversal.
Data reveals a significant increase in Ethereum's network activity. The transaction volume among top Ethereum DApps rose by 7.75% in the past week, driven by various factors.
Several bullish indicators are propelling Ethereum's performance, including scaling solutions and the impending launch of Ethereum ETFs in the market. Analysts predict that the ETH/BTC ratio will continue to rise, with expectations of 0.1 within a few months.
The optimistic outlook for spot Ethereum ETFs launching soon is bolstering ETH's bullish momentum. Industry experts anticipate the possibility of these investment products launching by late June, potentially leading to new highs for Ethereum.
Market participants foresee Ethereum ETFs as a bet on Web3's growth, with expectations of institutional capital flowing into Ether ETFs. The market sentiment leans towards ETH potentially reaching $10,000 in this cycle as interest in Ethereum continues to grow.
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