The recent victory of Ethereum over the SEC has once again drawn investors' attention to this second-largest cryptocurrency by market capitalization. Many see three key reasons for its further growth. Let's delve into what's happening with Ethereum and the forecasts from industry experts.
What's Happening with Ethereum?
On June 19, 2024, reports surfaced that the U.S. Securities and Exchange Commission (SEC) had suspended its investigation into Ethereum. This information came from Consensys, the developer of software for Ethereum.
In the spring of 2024, #Ethereum came under #SEC scrutiny due to its transition to the Proof-of-Stake (PoS) algorithm. The regulator argued that such coins might be illegally issued securities.
Despite these concerns, the SEC approved the launch of spot ETFs based on Ethereum in the U.S. Consensys requested the SEC to explain why it greenlit an instrument allegedly violating the law. Following this request, the investigation was suspended, though the SEC's official documents mention the possibility of resumption. Nonetheless, the crypto community viewed this as a significant victory.
Market Reaction
The market responded with a rise in Ethereum's price following the news of the investigation's suspension. The cryptocurrency increased by over 5% in one day before undergoing a correction. As of the writing of this overview, Ethereum is trading at $3568.
Forecasts and Opinions
The crypto community is divided on Ethereum's victory. Some believe this triumph is a result of corruption. A contrasting example is the ongoing SEC lawsuit against Ripple, which has been dragging on since December 2020.
Three Reasons to Buy Ethereum Now
Many investors see potential for Ethereum's growth due to several factors:
Victory Over the SEC: The suspension of the investigation opens a path for Ethereum's growth and attracts new investors.
Launch of Spot Ethereum-ETFs: Scheduled for July 2024, the introduction of these exchange-traded funds is expected to increase demand for Ethereum. Investors will invest in these funds, prompting fund issuers to purchase Ethereum, thereby driving up its price.
ETH Shortage on Exchanges: Popular investor @QuintenFrancois noted that Ethereum volumes on exchanges have dropped to an eight-year low. With the launch of spot ETFs, this scarcity could trigger a price rally.
The Future of Ethereum
Many believe that these factors combined will lead to a new rally and push Ethereum to new highs. What do you think?
