💥💥The approval of Ethereum ETF heralds the coming of a prosperous era for altcoins and the entire crypto world!
Why can the successful launch of ETH ETF have such a profound impact on the altcoin market?
Looking back at BTC ETF, although its net inflow of funds reached 17 billion US dollars, which drove the rise of BTC, the overall market did not prosper as expected. The reasons are: first, the effect of BTC ETF capital inflow is mainly limited to Bitcoin itself; second, the main holders of BTC are mostly institutions and large investors, who have limited interest in altcoins; third, the lack of new market highs makes it difficult to attract widespread participation from retail investors.
However, the launch of ETH ETF will break this situation. Its capital inflow will start a virtuous circle: the rise in ETH prices will drive the prosperity of the DeFi ecosystem, and the fundamental value and price of DeFi altcoins will increase accordingly. This will rekindle the market's interest in DeFi and promote the emergence of new tokens and liquidity mining activities. As ETH is purchased in large quantities and locked in smart contracts, the on-chain activity will increase significantly, thereby driving up the fundamental value of ETH. Existing ETH holders are more likely to invest their funds in the altcoin market, further exacerbating the market boom.
At the same time, as TradFi's active addresses, burns, and fundamentals improve, funds will continue to flow into the ETH ETF, forming a self-reinforcing positive feedback loop. In this process, the altcoin market will become the real winner and usher in their performance moment. $ETH
