Altcoins
Ethereum ETFs and MVRV growth hint at ETH dominance in Altcoin season
Ethereum market value in real value (MVRV) is outpacing Bitcoin and other assets ahead of the expected altcoin season. This metric indicates an increase in positive fundamentals in the market amid declining prices triggered by declining sentiment. The main drivers of ETH’s performance are upcoming Ethereum ETF listings and whale accumulations.
Ethereum MVRV surpasses Bitcoin
Ethereum’s MVRV is moving higher than market leader Bitcoin amid a number of industry factors. New data from the on-chain analytics company
CryptoQuant shows that the trend suggests hitting the ETH market in relation to its fundamentals.
“We are entering the start of the high season. $ETH’s MVRV is growing faster than BTC’s MVRV, suggesting that the ETH market is overheating relative to 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 an asset rally, but recent events point to an Ethereum-only season according to data. However, gains will be seen in other altcoins due to ETH’s effect on the market. The asset’s recent surge to $3,700 before a price correction has reinforced similar sentiments in altcoins and meme tokens.
Institutional investors have increased their appetite for Ethereum following the success of Bitcoin ETFs in the first quarter of 2024. This led to inflows into investment products that took most funds out of the red zone in terms of annual figures.
ETFs and accumulation drive sentiment
Potential ETF pricing sparked bullish signals that led to an increase in ETH’s momentum. The initial approval saw its price rise 22% before falling alongside the market. Bulls project billions in inflows into Ethereum due to its smart contract capabilities and existing market utility.
Likewise, on-chain data shows accumulation of the asset despite a drop in prices. Several analysts have predicted that the price will reach $4,000 Ethereum ETFs stock market listing combined with positive macroeconomic factors such as cooling inflation and interest rate cuts.
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David is a financial news contributor with 4 years of experience in Blockchain technology and cryptocurrencies. He is interested in learning about emerging technologies and has an eye for the latest news. Staying up to date on trends, David has reported in several niches including regulation, partnerships, cryptocurrencies, stocks, NFTs, etc. Away from the financial markets, David cycles and rides horses.