- Speculation about an imminent Spot Ethereum ETF approval boosted Ethereum’s price over 20%.
- Increasing interest in ETH futures is evident, with more buy orders noted in the perpetual futures market.
- Ethereum Layer-2 solutions like Arbitrum and Base are rapidly growing, adding millions of users weekly.
Rumours around Spot Ethereum exchange-traded funds possibly being approved as early as Friday morning Australian Time has sent shock waves through the market.
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After months of dwindling expectations and many suggested odds of an approval being around 25%, the news significantly impacted the market. Ethereum price climbed well into the upper range of US$3K (AU$4.5K) – a gain over 20% from last week.
Analysts at CryptoQuant note that traders presently prefer ETH or BTC exposure. They added that there are now more buy orders for the ETH perpetual futures market compared to other order types.
The perpetual futures market for cryptocurrencies is a type of derivatives trading where investors can speculate on the future price of digital assets like Bitcoin or Ethereum without an expiry date. This allows for continuous trading and provides leverage, enabling traders to amplify potential gains or losses based on the price movements of the underlying cryptocurrency.
Additionally, the increasing Open Interest rate for Ethereum compared to Bitcoin suggests heightened trader confidence in Ethereum’s market movements compared to Bitcoin, as per CryptoQuant.
A higher ratio implies that traders prefer to have more exposure to ETH than Bitcoin at the margin, and vice versa.
CryptoQuant Ethereum Layer-2 User Base Growing, Data Shows
Meanwhile data from growthepie shows user numbers in another interesting metric are increasing fast. Ethereum layer-2 solutions, such as Arbitrum and Base are growing rapidly – an impressive 30% or seven million users in a matter of just seven days.
Arbitrum is by far the most used layer-2 with 3.7 million weekly active addresses, Base managed 1.19 million, while zkSync Era had just under one million users.
Layer-2 Base has seen increasing memecoin activity in recent months as an alternative to Solana. Additionally, Ethereum ETF speculation has also fuelled the entire sector and the Ether platforms.
As Layer-2 technologies improve the performance and reduce costs of using dApps, developers are more likely to build on these platforms, driving more users to Layer-2 as they access dApps for gaming, finance, or social media.
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Source:
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