After the U.S. Securities and Exchange Commission (SEC) approved the 19b-4 exchange rule change documents for eight Ethereum spot ETFs in May, major issuers have also submitted updated versions of the S-1 registration application documents. Once approved by the SEC, the Ethereum spot ETF will be open for listing and trading.
As for the latest progress, the submission of the revised S-1 application ended on the 8th. It is not clear how quickly the SEC will process it, but he is optimistic that the Ethereum spot ETF can be launched next week or within two weeks.
The Ethereum spot ETF could be launched later this week, or during the week of July 15.
Once the United States approves the Ethereum spot ETF, net inflows in the first six months may be as high as US$5 billion. The current ETH/BTC ratio is close to a multi-year low. Strong capital inflows may trigger a compensatory rally. If the ETH/BTC ratio returns to the median of the past three years, ETH may rise by nearly 20%. If it reaches the maximum value of 0.087, it is expected to rise by 55%.
Which Ethereum ecosystems are worth paying attention to?
After the Ethereum spot ETF is successfully passed, if funds continue to flow in, Ethereum ecosystem projects will be expected to benefit. Therefore, we can focus on the largest areas and projects in the Ethereum ecosystem.
Layer2
Layer2 aims to support the prosperity of the ETH ecosystem with high TPS and low GAS. Its importance is self-evident. Major projects include MATIC, MNT, ARB, STX, IMX, OP, STRK, ZK, AEVO, MANTA, BLAST, etc. Layer2 ecosystem tokens have fallen by 25% to 50% in the past 30 days.
If I had to choose, I would choose MATIC or STX.
LSD
The LSD protocol is a node-related staking service that emerged after ETH switched from POW to POS. Major projects include LDO, SSV, RPL, FXS, etc. The LSD ecosystem token has fallen by 25% to 50% in the past 30 days.
LDO, SSV are preferred
DeFi
DeFi applications cover Dex, lending, stablecoin trading, stablecoin issuance, etc. Major projects include Pendle, UNI, AAVE, COMP, CRV, MKR, etc. The DeFi ecosystem tokens have fallen by 15% to 40% in the past 30 days.
Preferred Pendle
Stablecoin protocol based on ETH collateral
There are many ways to issue stablecoins, one of which is to issue them with collateral assets. The largest collateral asset includes ETH. After having LSD and re-staking, the project party will use the collateralized ETH to obtain liquidity income, and the stablecoin will have a natural yield. The main projects include ENA, LBR, etc., but ENA has fallen by as much as 60% in the past 30 days.
This section needs further observation
Re-pledge
Re-staking refers to staking assets again after the initial pledge. Re-staking has developed into one of the mainstream DeFi applications on Ethereum. Major projects include REZ, ETHFI, ALT, BB, etc. Coingecko data shows that DeFi ecosystem tokens have performed badly in the past 30 days, with a drop of 40% to 60%.
ETHFI is the first choice. You can follow the unlocking trend, including the changes in the project's airdrop plan and the people-friendly effect of staking points, and then consider whether you can hold this token for a long time.
The approval of the Ethereum ETF may bring huge development opportunities to the Ethereum ecosystem. The above projects are just part of them. There are many other potential projects worth paying attention to. Please keep an eye on market trends and make investment decisions based on your risk tolerance.
Later, I will bring you analysis of leading projects in other tracks. If you are interested, you can click to follow. I will also organize some cutting-edge consulting and project reviews from time to time. Welcome all like-minded people in the cryptocurrency circle to explore together.
