Ethereum ecosystem sees impressive Q1 earnings, issuers plan to market ETH as the ‘ultimate app store’


  • Ethereum ecosystem generated more revenue in Q1 than Etsy, Robinhood or Reddit.
  • Issuers plan to market Ethereum as a 'producing tech stock' and the 'ultimate app store’.
  • Ethereum could see a bullish reversal in the coming days.

Ethereum's (ETH) price is down 1% on Monday as its exchange supply hit record lows following growth in global ETH ETFs' inflows. Meanwhile, issuers plan to market Ethereum as the 'ultimate app store’.

Daily digest market movers: Low exchange supply, high ETF inflows, ‘ultimate app store’

Ethereum has recorded several amazing feats in the past few days despite its recent price decline. Here are the latest ETH market movers:

  • According to Glassnode data, only 10.5% of the total ETH supply was left on exchanges as of June 8. Coupled with the declining exchange supply, data from IntoTheBlock shows that large ETH holders (addresses with >10K ETH) recorded a net inflow of 267K ETH on Thursday, the highest daily accumulation since March. This shows that investors are becoming increasingly bullish on ETH, potentially because of the expectation of spot ETH ETFs.

Also read: Ethereum's price suffers slight decline amid Hong Kong's plan to allow staking in ETH ETFs

  • Recent Bitwise research revealed that crypto protocols on Ethereum generated more revenue than Robinhood, Reddit, Yelp and Etsy in Q1 2024. "These applications are a testament to the resilience, creativity, and vision of the global crypto industry," said Bitwise.
     
  • Global Ethereum ETFs witnessed about $69 million in inflows — their highest inflow since March. Inflows across ETH ETFs will likely continue to rise as investors expect spot ETH ETFs to begin trading in the US in the coming weeks.
     
  • High inflows follow predictions from Bitfinex’s Head of Derivatives, Jag Kooner, that spot Ethereum ETFs could attract around 10-20% of flows witnessed in spot Bitcoin ETFs.
    He built his predictions around the historical flows seen in Gold ETFs after they launched in 2004 and how it paved the way for subsequent flows in Silver ETF launches in 2006. Bloomberg analyst Eric Balchunas has previously shared a similar analysis comparing ETFs of Bitcoin to those of Gold and Ethereum to Silver.

Also read: Ethereum ecosystem active users spike 55% in Q1, 2x ETH ETF records impressive volume

  • Meanwhile, executives of different issuers, including Van Eck, 21Shares and Franklin Templeton, deliberated on the potential demand for Ethereum ETFs in a recent panel session moderated by Eric Balchunas. According to Balchunas, the executives plan to "position it (Ethereum) as being like a 'producing tech stock', 'ultimate app store', very different pitch than BTC."

ETH technical analysis: Ethereum to see a potential bullish reversal

Ethereum is trading around $3,661 on Monday after the US Nonfarm Payrolls (NFP) data on Friday cooled signs of any potential breakout above the $3,900 resistance. The NFP news briefly sent ETH below the $3,618 support before a slight recovery. ETH liquidations sit at $9.47 million, with the majority coming from long liquidations worth $6.99 million.

ETH/USDT 4-hour chart

ETH/USDT 4-hour chart

According to data from Laevitas.ch, the ETH futures premium dropped from around the 15% mark to 13% on Monday — its lowest level since the SEC's position response toward spot ETH ETFs — signaling dwindling investor interest. The futures premium stays around 5% to 10% in neutral market conditions.

Read more: Ethereum open interest surges by 50%, SEC Chair says ETH ETF launch will take more time

ETH Open Interest (OI) also declined from $16.97 billion on June 6 to $16.37 billion on Monday, a $600 million decrease. However, considering prices declined faster than OI, investors may still be confident of a bullish reversal, indicating the bearish move could be temporary.

As a result, ETH will likely sustain a horizontal move slightly tilted toward an upward movement. The $3,900 resistance is the key price level for ETH to overcome before any significant breakout. A sustained move below the $3,618 support will invalidate the bullish thesis.

Ethereum FAQs

Ethereum is a decentralized open-source blockchain with smart contracts functionality. Serving as the basal network for the Ether (ETH) cryptocurrency, it is the second largest crypto and largest altcoin by market capitalization. The Ethereum network is tailored for scalability, programmability, security, and decentralization, attributes that make it popular among developers.

Ethereum uses decentralized blockchain technology, where developers can build and deploy applications that are independent of the central authority. To make this easier, the network has a programming language in place, which helps users create self-executing smart contracts. A smart contract is basically a code that can be verified and allows inter-user transactions.

Staking is a process where investors grow their portfolios by locking their assets for a specified duration instead of selling them. It is used by most blockchains, especially the ones that employ Proof-of-Stake (PoS) mechanism, with users earning rewards as an incentive for committing their tokens. For most long-term cryptocurrency holders, staking is a strategy to make passive income from your assets, putting them to work in exchange for reward generation.

Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) mechanism in an event christened “The Merge.” The transformation came as the network wanted to achieve more security, cut down on energy consumption by 99.95%, and execute new scaling solutions with a possible threshold of 100,000 transactions per second. With PoS, there are less entry barriers for miners considering the reduced energy demands.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Ripple rides RWA narrative with Archax collaboration, XRP extends seventh day of losses to 8%

Ripple rides RWA narrative with Archax collaboration, XRP extends seventh day of losses to 8%

Ripple announced that the payment remittance firm extended its collaboration with FCA regulated digital securities exchange Archax. The collaboration is focused on Real World Asset tokenization, an emerging narrative in the ecosystem. 

More Ripple News

ONDO extends gains despite surge in profit-taking

ONDO extends gains despite surge in profit-taking

ONDO, the governance token of Ondo Finance, trades in the green on Friday, defying the effects of a surge in profit taking from large-wallet investors following the 76% gains seen in the past 30 days. 

More ONDO News

Monero price poised for a downward correction

Monero price poised for a downward correction

Monero (XMR) price has encountered resistance at a critical level. The technical outlook suggests a potential short-term correction as momentum indicators signal a bearish divergence.

More Cryptocurrencies News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin braces for potential short-term correction

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin braces for  potential short-term correction

Bitcoin price daily candlestick closes below the weekly support level of $67,147. Ethereum price is weakening and could retrace to its immediate support at $3,321. Ripple price fails to close above the 50-day Exponential Moving Average.

More Cryptocurrencies News

Bitcoin: Has BTC found a local price bottom?

Bitcoin: Has BTC found a local price bottom?

Bitcoin (BTC) price looks set for a mild fall this week, weighed by slight outflows in the US spot ETFs and the US Federal Reserve (Fed) keeping a hawkish interest-rate outlook despite easing inflation. Technical indicators suggest that BTC could face a further 5% correction in the short term before resuming the uptrend.

Read full analysis

BTC

ETH

XRP