Ethereum ETFs: The next big push for Bull Run
Ethereum ETF in May, anticipation is running high for another major milestone in the crypto space.
If Bitcoin's dominance in the crypto market is undeniable, Ethereum's unique functionalities and growing ecosystem make it a force to be reckoned with. The Ethereum blockchain and its native currency, Ether (ETH), serve as the backbone for a vast array of decentralized applications and innovative projects. From smart contracts to decentralized finance (DeFi) and non-fungible tokens (NFTs), Ethereum's ecosystem continues to drive unprecedented levels of use cases and activities.
ETH has already demonstrated strong performance with a 33% gain year-to-date. This rally is fueled by a combination of factors, including Ethereum's shift to a proof-of-stake consensus model, which has made its token supply deflationary. Additionally, the amount of ether locked up in staking pools, DeFi smart contracts and layer-2s is also an important factor. The proportion of ETH held on exchanges has reached an all-time low of 11%, suggesting increased demand and scarcity.
The growth of Ethereum's ecosystem, particularly in the DeFi sector and layer 2 scaling solutions, further reinforces the bullish outlook for ether. New layer 2 networks have brought scalability and lower fees to the Ethereum network, driving higher transaction volumes and activity. With further upgrades to the Ethereum blockchain, such as the upcoming Dencun upgrade, Ethereum's ecosystem is poised for continued expansion and value accrual. To add this, the number of
