According to U.Today, the crypto industry is eagerly awaiting the SEC's decision on the Ethereum spot ETF, which is expected as early as May 23. The probability of approval has been increased from 25% to 75% by top industry analysts, causing a surge in Ethereum's price by over 20% in a single day.
Prominent cryptocurrency expert Raoul Pal has shared his thoughts on the potential impact of this development. He outlined a scenario where high demand for the ETF, combined with 30% of Ethereum being staked and ongoing burning processes making supply deeply negative, could lead to a period of exponential growth and market imbalance. This situation, which he refers to as a 'banana zone squared', is driven by rapid crypto adoption and significant increases in market capitalization.
Pal suggests that if these conditions are met, Ethereum could experience unprecedented price increases. He believes this scenario is already in progress and predicts that non-fungible tokens (NFTs) will see a massive boom once Ethereum reaches a new all-time high. This prediction is particularly significant considering Ethereum's previous peak of $4,868 on Nov. 8, 2021. With the altcoin's price currently less than 29% away from this all-time high, the market seems poised for significant activity.
The anticipation of the SEC's decision, the possibility of a new all-time high, and the potential explosion of NFTs are adding to the excitement surrounding Ethereum. If Pal's predictions prove accurate, the coming weeks could be a historic period for Ethereum and the wider digital asset market.
