According to data from Coinmarketcap, Ethereum experienced a significant uptick in its market value, surging over 4% to reach $3,998 per token. 

This upward momentum is particularly noteworthy considering the sluggish performance of traditional equities, with Bitcoin and Ethereum outpacing SP500 returns by 10.0% and 14.7% respectively this week. 

#Bitcoin (+10.0%) and #Ethereum (+14.7%) notably outpaced #SP500 (+0.5%) returns this week. Historically, #cryptocurrency markets see sustained #bullmarkets with little to no correlation with #equities, so traders are hopeful this trend continues. https://t.co/dgRoilWYuJ pic.twitter.com/yUVYP5KFQI

— Santiment (@santimentfeed) March 9, 2024

The divergence from traditional markets reinforces traders’ optimism regarding sustained bull markets in the cryptocurrency sphere, which historically exhibit minimal correlation with equities.

Ethereum’s weekly fees exceeded $190 million, translating to an annualized rate surpassing $10 billion for the first time since early 2022. This milestone underscores Ethereum’s enduring significance within the crypto landscape.

Additionally, Ethereum’s fee-burn mechanism has contributed to a reduction in its supply by approximately 33,000 ETH, equivalent to around $125 million, over the course of this week.

Ethereum’s $190M+ in weekly fees puts it at an annualized rate of over $10B for the first time since early 2022.
Due to Ethereum’s fee-burn mechanism, this also has an impact on the supply, decreasing it by 33k ETH (~$125M) this week. pic.twitter.com/iAibEvzh4j

— IntoTheBlock (@intotheblock) March 8, 2024

Regulatory Developments Around Ethereum ETF

In regulatory developments, Grayscale and Coinbase engaged in discussions with the U.S. Securities and Exchange Commission (SEC) to advance their pursuit of regulatory approval for an Ethereum exchange-traded fund (ETF).

Grayscale seeks to transform its Ethereum ETF into a spot Ethereum ETF, signaling a strategic shift in the cryptocurrency investment landscape.

Coinbase and Grayscale met with the U.S. Securities and Exchange Commission this week to share information to support their push to gain regulatory approval for a spot Ethereum ETF. Grayscale is trying to convert its Ethereal Trust into a spot Ethereum ETF.…

— Wu Blockchain (@WuBlockchain) March 9, 2024

Recent on-chain reports revealed a notable transaction involving a whale who withdrew 2917 pledged coins of ETH from ether.fi and subsequently deposited them into Binance, amounting to $11.5 million.

Notably, these funds were initially transferred from Binance three weeks ago, on February 19, 2024, at an average price of $2883. If liquidated, this transaction would yield a profit of $3.05 million, underscoring the dynamic nature of Ethereum trading activities.

五分钟前，巨鲸从 https://t.co/PgmTfvn6Hd 中取出质押的 2917 枚 $ETH 后全部充值进 #Binance，价值 1150 万美金

这笔资金是三周前（2024.02.19）以均价 $2883 从币安转出的，若全部卖出将获利 305 万美金

钱包地址 https://t.co/tKzcLEBHF9 pic.twitter.com/2CjuL6lXxv

— Ai 姨 (@ai_9684xtpa) March 9, 2024

Overall, Ethereum’s recent market performance and regulatory developments indicate a continued evolution within the cryptocurrency ecosystem, driven by both market dynamics and regulatory initiatives.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.

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Image Source: nexusplexus/123RF // Image Effects by Colorcinch

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Filed under: Bitcoin - @ March 11, 2024 3:30 am