Ethereum inflation continues to rise
Ethereum has been one of the main topics discussed in the market recently. Although the market has high hopes for the Ethereum spot ETF, this cannot change the trend of declining transaction demand on the Ethereum chain. According to data compiled by crypto asset custody company Copper, due to a sharp decline in the number of ETFs burned on the Internet, Ethereum has maintained inflation for 70 consecutive days, with the annualized inflation rate reaching 1.39%, the highest level since the Merge. .
Can Ethereum see the light of day after ETF passes?
There are many different opinions on how an Ethereum ETF will perform post-approval.
Matt Hougan, chief investment officer of asset management company Bitwise, said that after taking into account factors such as the market capitalization of Ethereum and Bitcoin, international trading product market data, and arbitrage trading, he predicts that once the Ethereum ETF is listed in the United States, it will be available within 18 months. Attracting net capital inflows of US$15 billion.
He believes that investors will allocate funds in proportion to market capitalization, that is, investors will allocate about 75% of the weight in the Bitcoin ETF and about 25% in the Ethereum ETF. Furthermore, Matt Hougan also predicts that Bitcoin ETF assets under management will increase to at least $100 billion by the end of 2025.
However, Andrew Kang, founder and partner of cryptocurrency venture capital firm Mechanism Capital, holds the opposite view. It believes that the Ethereum spot ETF estimates that there may be "real" inflows of $840 million in the same time frame (excluding funds converted from spot forms), and predicts that before the launch of the Ethereum ETF, Ethereum ( ETH) will trade between $3,000 and $3,800, and after the ETF launch, Ethereum may fall to between $2,400 and $3,000.
(This article is reproduced from GT Radar with permission)
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