Analysts warn that a spot ETH ETH approval might not produce the bullish price outcome that many traders expect. Do futures markets agree?) price might be on the brink of its most significant event in terms of a spot ETH ETF integrating the altcoin with traditional financial markets, yet its price is not responding as expected. In fact, on June 24, Ether reached its lowest level in over a month, falling to the $3,250 level.
Markus Thielen, head of research at 10x Research, noted that the revenue Ethereum generates is"minuscule" compared to its market capitalization, indicating that the asset does not currently represent a"viable, sufficiently cash-flow-producing investment." Thielen also pointed out that the yields from Ether staking remain lower than those from United States Treasury bonds.
Despite a more favorable cryptocurrency regulatory environment in the U.S., it is crucial not to overlook macroeconomic trends. The U.S. Conference Board reported on June 25 that its consumer confidence index fell to 100.4 from 101.3 in May, suggesting that households are"for some time," as reported by Yahoo Finance.
As Markus Thielen pointed out, justifying Ethereum's token valuation is challenging, given that the network's revenue is only $23.9 million per week, based on DefiLlama. By comparison, Tron and Solana, which hold far fewer deposits, generate $8.8 million and $9.8 million per day, respectively. Therefore, if analysts' expectations of low spot ETF inflows are confirmed, the likelihood of Ether surpassing $3,700 in the near term appears slim.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.Bitcoin taps $62K as 6% BTC price rebound runs into stubborn US dollar
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