NewsletterEthereum ETFs and MVRV Growth Suggests ETH Dominance in Altcoin Season
Highlights
- Ethereum’s MVRV might see it dominate the altcoin season.
- This is coupled with an anticipated spot Ethereum ETF listing in the United States.
- Bulls continue to accumulate the asset despite a price drop.
Ethereum market value to real value (MVRV) is outpacing Bitcoin and other assets ahead of the anticipated altcoin season. This metric points to increased positive fundamentals in the market amid the decline in prices sparked by a fall in sentiments. Major drivers of ETH performance are the upcoming Ethereum ETF listings and whale accumulations.
Ethereum MVRV Outpaces Bitcoin
Ethereum’s MVRV is moving higher than market leader Bitcoin amid a slew of industry factors. New data from on-chain analytics firm CryptoQuant shows the trend suggests hitting up the ETH market in relation to its fundamentals.
“We’re entering early alt season. $ETH MVRV is rising faster than BTC MVRV, suggesting the ETH market is heating up relative to its on-chain fundamentals. Given the current ETF situation, this might be an ETH-only season. Historically, when ETH surges, other alts tend to follow.”
The altcoin season is expected to see a rally in assets but recent events point to an Ethereum-only season according to the data. However, gains will be seen in other altcoins due to the effect of ETH on the market. The asset’s recent surge to $3,700 before a price correction boosted similar sentiments in altcoins and meme tokens.
Institutional investors increased their appetite for Ethereum after the success of Bitcoin ETFs in Q1 2024. This led to inflows into investment products taking most funds out of the red zone in terms of yearly figures.
ETF and Accumulation Drive Sentiments
Potential ETF listings have ignited bullish signals leading to a rise in ETH momentum. The initial approval saw its price soar 22% before falling alongside the market. Bulls project billions of inflows to Ethereum because of its smart contract capabilities and existing market utility.
Similarly, on-chain data shows the accumulation of the asset despite a price fall. Several analysts have projected the price to tap $4,000 post Ethereum ETF listing coupled with positive macroeconomic factors like cooling inflation and interest rate cuts.
Also Read: Binance Appeals $4.4M Fine by Canada’s FINTRAC Over AML Violations
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