Unveiling Crypto Market Insights - ETH tailwinds in 2024

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GM Bitstampers!

In January 2024, we posted about the tailwinds and headwinds for Ethereum in the coming year. In this post, we'll focus on some of the factors that contributed to a +50% increase in price since the beginning of the year.

The tailwinds we noted in January included the release of EIP-4844, the potential deflationary nature of Ethereum, and the possibility of ETF approval. The headwinds included potential migrations of fee-sensitive users to alternative Layer 1 and Layer 2 solutions, concerns about centralization, and the movement of projects to faster and cheaper chains.

Release of EIP-4844:
EIP-4844 went live in March 2024 with the Dencun upgrade, enhancing Ethereum’s scalability, security, and usability.

Deflationary Nature:
Ethereum has remained deflationary since the Merge, although the supply levels remain similar to those at the time of our last report.

ETH ETF Approval:
On May 23th, the SEC approved ETH spot ETFs from eight issuers, causing the price to rise by nearly 25% that week. The price continued to increase in the days following approval, almost reaching $4,000. Although the price retraced most of these gains in June and early July, it began climbing again in the last two weeks. Several issuers, including VanEck and 21Shares, filed amended registrations last week, hoping for the SEC’s final approval to list spot Ether ETFs. Nate Geraci, ETF analyst and president of The ETF Store, forecasted that eight spot ETH ETFs would be launched by the end of this week. Whereas Bloomberg Senior ETF Analyst Eric Balchunas said that ETFs will likely launch next week on Tuesday, July 23.

When do you think the first ETH spot ETFs will start trading?

What tailwinds and headwinds do you foresee for ETH in the future?