Submission of S-1 form raised the chances of spot Ethereum ETF approval, expected to receive the green flag on July 23. The approval of spot Ethereum ETF will mark a meaningful landmark in the mainstream acceptance of digital assets. Moreover, Cboe’s new listing has brought confirmation to the optimism.
At the time of writing, ETH was hovering at $3,503.63, after an intraday spike of 2.41% with a market cap of $421,008,896,646 and 24-hour trading volume of $16,987,326,339.
Source: CoinMarketCap
Following the Bitcoin ETF approval, which saw substantial institutional investments, the upcoming development is anticipated to draw in fresh investors, especially those with a higher risk tolerance who might be interested in memecoins as a high-risk, high-reward entry point into the Ethereum ecosystem.
This ETF approval would boost confidence in ETH's blockchain, indirectly increasing interest and enthusiasm for memecoins built on it. Compared to those on other blockchains like Solana (SOL), ETH's well-established developer community, robust network security, and ongoing scalability improvements give it a competitive advantage.
Action’s Reaction to Ethereum Ecosystem
The Ethereum community could experience a memecoins rally after Spot Ethereum ETF approval. Let’s have a look at the action’s reaction to Ethereum Ecosystem.
Shiba Inu (SHIB): Shiba Inu, one of the prominent players in the meme world often exhibits some degree of price correlation with ETH. If ETH's price increases due to ETF approval and positive market sentiment, SHIB could see similar upward movements in price. Currently, SHIB was trading at $0.00001779, after recording a price surge of 1.67% in a day with $10,518,293,575 in market cap and $516,424,036 in 24-hour volume.
Pepe (PEPE): Another memecoin that might be influenced by the ETF approval is PEPE, an Ethereum-based token with a no-tax policy and deflationary nature. Investors might see Pepe Coin as a speculative opportunity, particularly if they perceive positive developments in the Ethereum market. The coin is currently hovering at $0.00001229, after gaining a hike of 4.36% in the past 24 hours.
MAGA (TRUMP): At the press time, TRUMP price was recorded at $6.65, after recording an intraday spike of 3.03%. While the specific impact of ETF approval on the TRUMP coin would depend on various market factors and investor sentiment, the approval could potentially influence MAGA Coin's price and market dynamics in the short to medium term.
Apart from this, the ETF approval will create a media buzz and increase investors' trust in ETH, motivating them to invest in ETH-based coins. While the primary impact will be on ETH itself, there's an intriguing secondary effect, a surge in the valuations of memecoins on the respected blockchain.
This development could significantly influence the memecoin landscape and shape its future trajectory.
Conclusion
Spot Ethereum ETF approval is poised to be a key moment for the Ethereum ecosystem. It is hoped to attract new investors, boost confidence in Ethereum's blockchain, and potentially drive up the valuations of memecoins built on it. This development not only highlights the growing mainstream acceptance of digital assets but also sets the stage for significant evolution and innovation within the Ethereum network.
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