Synopsis
- Ethereum validator count passes 1M
- Fidelity files with SEC for spot Ethereum ETF
- Bitcoin ETFs snap outflows streak
- Biggest gainer and loser of the week
Key Observations
Analysis
Ethereum network records over 1M validators
Thursday marked a major milestone for the Ethereum network as it reached one million validators, collectively staking around 32M Ether, valued at approximately $114B, which is about 26% of the total supply. This surge in validators is attributed to Ethereum’s transition to a proof-of-stake system in September 2022, rewarding participants for securing the network. Lido, a leading staking pool, holds roughly 30% of all staked Ether, allowing smallholders to participate. However, concerns have arisen within the Ethereum community regarding the potential over-staking and reliability of transactions. The U.S. Securities and Exchange Commission (SEC) has reportedly launched investigations into entities associated with the Ethereum Foundation, raising questions about Ether’s regulatory status. This has led to speculation about the SEC’s stance on Ether and the approval of Ether ETFs, with a decision expected by May 23, 2024. Despite regulatory uncertainties, BlackRock CEO Larry Fink remains optimistic about launching an Ether ETF, stressing its potential viability regardless of Ether’s classification as a security.
Fidelity files with SEC for spot Ethereum ETF
ENS, or the Ethereum Name Service, provides human-readable domains such as example.eth, which can be linked to Ethereum wallets. This makes sending and receiving crypto simpler by replacing long addresses with simple names. Google first let users check Ethereum wallet balances in May 2023. Now, Google also supports ENS domains, making it even easier for people to use crypto. This helps users navigate the crypto world smoothly, making transactions hassle-free. Google’s move shows it wants to make crypto easier for everyone, making it simpler to use.
Bitcoin ETFs snap outflows streak
Nasdaq-listed spot bitcoin ETFs experienced a $15.4 million inflow on Monday, ending a five-day outflow streak. Fidelity led with $261.8 million, followed by BlackRock at $35.5 million. Meanwhile, Grayscale’s GBTC lost over $350 million. A dozen spot ETFs debuted in January, simplifying cryptocurrency investment. Since then, Bitcoin surged over 50% to $70,750. Markus Thielen of 10x Research predicts stronger quarter-end flows, potentially lifting Bitcoin to new highs. Thielen notes Fidelity’s remarkable $262 million in Monday’s flows compared to previous sessions. He suggests Tuesday flows could also be positive, given Bitcoin’s price was above $70,000 at the time of commenting, and anticipates quarter-end flows to be stronger than usual.
Biggest gainer of the week: Core (CORE) up by 235.90%
Technical Analysis
CORE experienced a remarkable surge of 235.90% following a prolonged accumulation period. Hitting a new peak of $4.1786, it’s now undergoing profit booking, currently trading at $3.1281. In the short term, oscillators signal a sell, but moving averages indicate a robust buy. Looking at the monthly timeframe, all technical indicators strongly advocate for buying. The critical support zone lies between $2.4 to $2.8. Should CORE maintain this level, it could pave the way for further upward momentum.
Biggest loser of the week: THORChain (RUNE) down by 24.84%
Technical Analysis
Last week, RUNE experienced a significant 24.84% decline. Presently, it’s entrenched in a downward parallel trend, with a potential regression to the $7.336 level, currently trading around a key support zone. If this support level is breached, we may anticipate a continuation of the downtrend. Short-term indicators, such as moving averages and oscillators, are signaling a strong sell signal. However, on a monthly basis, oscillators are suggesting a sell, while moving averages indicate a strong buy signal.
Conclusion
The cryptocurrency market was filled with several events. Firstly, the Ethereum network celebrated a milestone with over 1 million validators. Secondly, Fidelity submitted a filing with the SEC for a spot Ethereum ETF. Lastly, Bitcoin ETFs experienced a cessation in outflows, indicating a shift in sentiment towards positivity within the markets.
