- The spotlight on spot Bitcoin ETF applications by major institutions like Blackrock and Fidelity created significant interest. Lately, companies applying for Bitcoin ETFs have also begun applying for Ethereum-based ETFs.
- The influx of applicants seeking to establish Ethereum ETFs could provide a more positive sentiment for Ethereum. However, in the past month, the price of ETH has dropped, falling to $1832.
- Ethereum’s network growth has also stalled, indicating reduced interest in new addresses interacting with ETH.
Following the Bitcoin ETF frenzy, applications for Ethereum ETFs have rapidly increased. So, what is the current status on the Ethereum network?
Intense Interest in Ethereum ETF Applications
Recent spot Bitcoin ETF applications by major institutions like Blackrock and Fidelity garnered significant attention. These applications sparked interest around Bitcoin, fueling the hype around the cryptocurrency. However, recently, companies applying for Bitcoin ETFs have also begun applying for Ethereum-based ETFs.
In the past week, Valkyrie submitted an application to convert Bitcoin ETFs into an ETF that combines both Bitcoin and Ether, stating an estimated start date of October 3.
According to Eric Balchunas, an ETF analyst at Bloomberg, there have been 14 Ethereum-based ETF applications. The influx of applicants seeking to establish Ethereum ETFs could provide a more positive sentiment for Ethereum. However, in the past month, the price of ETH has dropped, falling to $1832.
At the same time, network growth has stalled, indicating reduced interest in new addresses interacting with ETH. This trend has been further highlighted by the slowing speed of ETH, which has shown a decrease in exchange activity among addresses in the past month.
What’s the Current Status for Ethereum?
Due to the drop in ETH price, the MVRV ratio for the cryptocurrency has significantly decreased. This indicates that most addresses holding ETH are not profitable. The reduced profitability of these addresses has diminished the incentive to sell their assets.
Alongside the MVRV ratio, the long-short difference for ETH has also decreased. A decreasing long-short ratio indicates that the number of old addresses holding ETH is starting to decline. Additionally, the state of Ethereum’s NFTs hasn’t been favorable. According to recent data, the Ethereum NFT market is currently experiencing a significant decline in both activity and volume.
Data reveals that trading volume across all Ethereum markets has recently reached its lowest level since November 2022.
