Wednesday, May 22, 2024

Ethereum Q1 Report Shows Big Gains, But Price Remains Flat.

After plunging earlier in the week, Ethereum (ETH) maintained its stabilising action for a second day on Thursday, closing over $3,300. Although this would indicate a lack of conviction on the part of bulls and bears, its Q1 numbers indicate consistent growth across all industries despite community members debating its commodity status.

Market movers for the day: L2s, Q1 earnings, and the commodity status of ETH

One of the cryptocurrencies that has gained the most traction in recent weeks is Ethereum. The cryptocurrency world seems to be focused on the SEC’s ruling on Ethereum ETFs and the recent takedown of Ethereum Foundation, despite initial hopes that talk would revolve around anticipation for Bitcoin’s halving. Having said that, here’s a brief summary of the most recent events pertaining to the biggest altcoin:

  • Global asset management VanEck researchers predict that Ethereum’s Layer 2 networks will generate more money than its main chain in a paper that was published on Wednesday. They saw data from the cryptocurrency analysis company Artemis XYZ, which contrasted the Mainnet’s diminishing market share with the underlying Ethereum ecosystem’s growing growth. VanEck analysts pointed out that L2s provide better throughput and user experience, particularly with the Dencun upgrade on March 13 that brought Blob space—a data layer for L2 that lowers data overhead and gas expenses.
  • The researchers went on to predict that Ethereum L2s would be valued more than $1 trillion by 2030, taking into account the possibility of the emergence of many application-, sector-, or function-specific Layer 2s, such as rollups that house the social media industry or an asset management L2. “The value of ETH as the true ‘oil’ powering the entire ecosystem of connected chains” is reinforced by these L2s, according to their statement.
  • Revenue and profitability for Ethereum increased significantly in the company’s Q1 financial report, which Coin98 Analytics issued on Wednesday. Ethereum had a 198.8% QoQ shift in profitability to $369.11 million and a remarkable 84.6% QoQ growth in revenue to $1.035 billion. The jump in petrol prices prior to the Dencun project is mostly to blame for this increase. Additional data points from the report include 9.7 million new addresses and 107 million transactions made in Q1.
  • Cory Klippsten, CEO of Bitcoin financial services company Swan.com, claimed in an X post on Wednesday that Ethereum was a security from launch, in response to the Q1 results of ETH. He asserted that when the CME was given permission to begin trading ETH futures ETFs, the SEC didn’t want to obstruct another institution.
  • In a different X post, James Seyffart said that the SEC’s request for public feedback on spot Ethereum ETF filings is standard practice and that he is “not ‘bullish’ in any capacity for Ethereum ETFs.”

Technical analysis: Indecisiveness persists

For the second day in a row, Ethereum’s price is moving horizontally, which has traders being more cautious. This suggests a decline in bullish attitudes towards the biggest altcoin.

If the price of Bitcoin begins to rebound, ETH may continue to rise and surpass the high of $3,493, which was reached on April 2. The next resistance levels, which coincide with previous swing highs observed in the last several days, are $3,517, $3,570, and $3,655.

But if ETH drops below the $3,204 support level—the low on April 2—this premise would be refuted.

Prices are anticipated to be significantly impacted by the SEC’s decision on the May 23 deadline for responding to VanEck spot Ethereum ETF filings.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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