Crypto Buzz: Ethereum’s Big Week and Its Ripple Effects

Excitement is within the air this week within the U.S. crypto scene, and Ethereum is leading the charge with a remarkable 8% every day increase. This surge can also be lifting related coins, including EtherFi.

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[Reuters Yonhap News]

Ethereum Breaks New Ground

Ethereum has made waves by climbing over 8% in only someday, hitting a milestone of $3,400 for the primary time since January. This is basically due to an unprecedented net inflow of over 1 trillion won into the Ethereum Spot Exchange Fund (ETF) on the U.S. stock market. As Ethereum shines, so too do the virtual assets inside its ecosystem.

Record-Breaking Numbers

On the morning of the seventeenth, Ethereum hit $3,425 on Binance, the biggest exchange globally, marking its first rise past $3,400 in 167 days since January 31. Although it’s seen a slight dip since, Ethereum remains to be hovering around $3,300.

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The Driving Force

The primary catalyst for Ethereum’s price spike is the influx of funds into the Ethereum spot ETF. According to data from Faside Investors on the seventeenth, a powerful $2.273.3 billion flowed into nine Ethereum spot ETFs listed on the U.S. stock market. Notably, a whopping $726.6 million was invested on the sixteenth alone, marking the primary time every day inflows exceeded 1 trillion won. For perspective, Bitcoin spot ETFs saw almost the identical net inflow of $779.6 million on that very same day.

Speculation and Legislation

Some attribute this surge to anticipation surrounding the U.S. Genius Act, a bill concerning stablecoins. Marcus Tillen, an analyst at 10X Research, suggests that if the Genius Act passes, it could prohibit interest payments from U.S. stablecoin issuers, potentially elevating Ethereum’s importance much more.

Wider Implications

Ethereum’s rally is fueling optimism for the altcoin market. Historically, the virtual asset market tends to rise sequentially, with Ethereum and other altcoins following Bitcoin’s lead.

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Bitcoin prices are displayed on the electronic board of Bithumb Lounge in Seocho-gu, Seoul on the morning of the 14th. [News 1]

Altcoin Reactions

The Ethereum ecosystem coins were quick to react to those developments. Ethereum Name Service (ENS), which simplifies Ethereum wallet addresses, jumped 22.9%, while EtherFi, an Ethereum-based deposit platform, saw an increase of 20.5%.

The Korean Perspective

Despite the thrill, interest within the Korean market stays relatively muted. On the sixteenth, the every day transaction value of KOSPI was recorded at 16.708 trillion won, based on the Korea Exchange. In contrast, CoinGecko reports that the highest five virtual asset exchanges in Korea (Upbit, Bithumb, Coinone, Cobbit, and Gopax) had a combined transaction value of 6.518 trillion won over the past 24 hours as of midnight on the seventeenth. This means the coin market’s transaction value is just 39.01% of KOSPI’s. Since February 3, when domestic coin transactions were last higher at 20.9619 trillion won, they’ve consistently lagged behind KOSPI.

Image Credit: www.mk.co.kr