Altcoins
Ethereum ETFs and MVRV Growth Suggest ETH Dominance During Altcoin Season
Ethereum’s market value relative to real value (MVRV) is outpacing Bitcoin and other assets ahead of the expected altcoin season. This measure indicates an increase in positive market fundamentals amid falling prices caused by declining sentiment. The main drivers of ETH’s performance are upcoming Ethereum ETF listings and whale accumulations.
Ethereum MVRV overtakes Bitcoin
Ethereum’s MVRV is moving higher than market leader Bitcoin amid a number of industry factors. New data from an on-chain analytics company
CryptoQuant shows that the trend suggests hitting the ETH market relative to its fundamentals.
“We are entering the start of the alternative season. $ETH MVRV is rising faster than BTC MVRV, suggesting that the ETH market is heating up from its on-chain fundamentals. Given the current ETF situation, this could be an ETH-only season. Historically, when ETH rises, other alts tend to follow.
The altcoin season is expected to see a surge in assets, but recent events suggest an Ethereum-only season, data shows. However, gains will be seen in other altcoins due to the effect of ETH on the market. The asset’s recent rise to $3,700 before a price correction reinforced similar sentiments regarding altcoins and meme tokens.
Institutional investors have increased their appetite for Ethereum after the success of Bitcoin ETFss in the first quarter of 2024. This led to inflows into investment products taking most funds out of the red zone in terms of annual figures.
ETFs and Accumulation Drive Sentiments
Potential ETF listings have triggered bullish signals leading to increased momentum in ETH. Initial approval saw its price rise 22% before falling alongside the market. Bulls are projecting billions in inflows to Ethereum due to its smart contract capabilities and existing utility in the market.
Similarly, on-chain data shows the accumulation of the asset despite a decline in prices. Several analysts predict the price to reach $4,000. Ethereum ETFs listing coupled with positive macroeconomic factors such as slowing inflation and falling interest rates.
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David is a financial news contributor with 4 years of experience in Blockchain technology and cryptocurrencies. He is interested in emerging technologies and has an eye for the latest news. Staying on top of trends, David has worked across several niches including regulation, partnerships, crypto assets, stocks, NFTs, and more. Far from the financial markets, David goes cycling and horse riding.