In the cryptocurrency space, a new trend is emerging: Ethereum, the second largest cryptocurrency by market capitalization, is overtaking Bitcoin, the established giant. This move comes in an intriguing context, marked by the historic launch of several spot Bitcoin exchange-traded funds (ETFs) in the United States.
In the last 24 hours, the Ethereum cryptocurrency, known as Ether, has seen an impressive increase of 6.4%, reaching a value of $2,602. At the same time, Bitcoin has remained relatively stable, trading around US$46,134, according to recent data from CoinGecko.
The non-fungible tokens (NFTs) landscape presents a distinct narrative. Bitcoin-based NFTs have been outperforming Ethereum-based ones in terms of sales. According to CryptoSlam, Bitcoin recorded over $18.5 million in NFT sales in the last 24 hours, while Ethereum NFTs achieved sales of approximately $15.8 million.
The NFT market shows preference for Bitcoin over Ethereum
This phenomenon comes at a crucial time, shortly after the US Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETFs. The SEC is expected to make a decision on Ethereum ETFs by May 23, 2024. Previous statements by SEC Chairman Gary Gensler suggest a careful approach in approving crypto asset securities, especially those that are not Bitcoin .
Despite this caution, the rise in Ethereum’s price reflects broader optimism in the market. There are expectations that an Ethereum ETF could be launched soon, following in the footsteps of Bitcoin ETFs. Large companies, such as BlackRock and Ark, have already submitted requests for this.
This possibility has generated intense debate about the classification of cryptocurrencies, whether as securities or commodities. This debate is not just theoretical; it has significant practical implications, directly influencing the SEC’s decision-making process.
These developments demonstrate the ever-changing dynamics of the cryptocurrency market. Ethereum is currently capturing the attention of investors, challenging Bitcoin’s dominant position. The history of cryptocurrencies is far from linear, with new chapters being written every day.
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.