Gary Gensler, chairman of the US Stock Exchange (SEC), issued warning statements to the crypto sector, raising uncertainty over the possibility of Ether gaining approval for a bitcoin-like ETF.
But this has not stopped Ether from skyrocketing, which has reached its highest point since May 2022. Perhaps unexpectedly, the approval of 11 bitcoin ETF proposals was also followed by the growth of ethereum-based projects.
ethereum-based projects shine
According to the latest Santiment report analysisProjects built on the ethereum platform saw significant growth in market capitalization when the SEC approved bitcoin ETF trading in the United States, ending more than a decade of rejections.
“ethereum-based projects were some of the biggest beneficiaries of market cap growth following the 11 ETF approvals from the SEC yesterday.”
Ether jumped 5% to reach $2,670, a level not seen in the last 20 months.
In addition to Ether, ENS, the native ethereum Name Service token that functions as a decentralized naming system built on ethereum, rose nearly 25% following the SEC's decision on January 10. The latest price action boosted its weekly gains to over 86%. ENS was currently trading at $25.96.
The skyrocketing of ethereum-based projects right after the fact indicated greater optimism in the ecosystem despite the lack of clarity in terms of a spot Ether exchange-traded fund (ETF).
The agency is expected to make decisions on approving Ether spot ETFs as early as May. Heavyweights such as BlackRock, Invesco, Ark, VanEck and Grayscale are among those awaiting approval.
Unlike bitcoin, which has been clearly categorized as a commodity, ethereum's classification is more complicated and the approval of an Ether ETF is considered “not as straightforward” as it was for bitcoin.
However, Steve McClurg, co-founder and chief investment officer of Valkyrie Funds, recently said that current market conditions are favorable for such an offering.
ethereum's GitHub Boost
Participants in the ethereum ecosystem are showing signs of resilience. According to Santiment, ethereum was one of several ERC:20 cryptoassets that have witnessed notable activity on GitHub over the past 30 days. It ranked third in terms of development activity behind Status and Chainlink, which captured the first and second positions, respectively.
Examining GitHub activity proves to be a compelling metric when evaluating ICOs and crypto projects. Developers invest their valuable time, a resource with a significant cost, in a specific project.
This commitment by numerous developers in the ethereum ecosystem, ahead of a possible place on the Ether ETF, may indicate confidence among developers in the potential success of the project.
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