- Ethereum’s price has surged to a 15-week high, fueled by a record $40 billion in futures trading interest and strong user growth across its network.
- Growing call for increased funding for regulators like the CFTC, which is crucial for bringing stability and fostering long-term growth.
Ethereum (ETH) is currently experiencing a wave of optimism, with its price pushing above $2,800, a level not seen in 15 weeks. This rally is accompanied by an unprecedented amount of money invested in Ethereum futures contracts, showing a highly active market.
While the main Ethereum network is attracting more users, newer networks built on top of Ethereum, like Base, are playing a big role in expanding the overall digital asset ecosystem.
Ethereum’s Rally and Whale Profits
After spending about a month moving between $2,300 and $2,800, Ether’s price hit a 15-week high of $ 2,827 yesterday. This is its highest point since late February. It’s currently trading at $2,795, up 4.7% in the last 24 hours. This price jump has allowed some whales to make significant gains.
One particular whale has earned over $31 million in just 44 days by making smart trades, buying and selling 30,000 ETH at key moments to profit from the rising price.
Beyond price movements, the Ethereum network is showing impressive growth in user numbers. The count of unique addresses interacting with Ethereum and its related chains has jumped by over 70% since the start of April, reaching a record 17.4 million addresses earlier this month.
The Base network, an Ethereum Layer 2 solution, has been a major driver of this growth, making up a large portion of new active addresses. Ethereum continues to lead the decentralised finance (DeFi) sector, holding a significant share of the total value locked in various DeFi projects.
However, there’s a concern about the relatively low network fees collected over the last 30 days. Recent upgrades that make transactions cheaper for users have also reduced the income for those who help secure the network. This is important because the mechanism that reduces Ethereum’s total supply relies heavily on these network fees.
Ethereum’s open interest has soared past $40 billion for the first time in history. This indicates a very active market with a lot of borrowed money involved, which can lead to rapid price changes. Despite this, the market seems balanced, with similar amounts of long positions and short positions at risk of being closed out around $2,600 and $2,900, respectively. This balance means that the market could be pushed in either direction.
Amid this market activity, the conversation around cryptocurrency regulation and the funding of oversight bodies is gaining serious momentum. Brian Quintenz, a former nominee for the CFTC (Commodity Futures Trading Commission) chair, has strongly advocated for more funding for the agency.
He emphasises that giving the CFTC enough resources is vital for it to effectively oversee the rapidly expanding crypto market, protect investors, and maintain market integrity. Senator Amy Klobuchar has publicly supported this call, stressing that well-funded regulatory bodies are crucial for building public trust in digital assets.
Historically, periods of increased regulatory oversight in the crypto market have often caused some short-term ups and downs as market participants adjust to new rules. However, these adjustments usually lead to greater confidence and participation from larger, more established institutions in the long run.
Ethereum, given its significant size and trading volume, is central to these ongoing regulatory discussions. Experts suggest that clearer rules, combined with proper funding for regulators, could lead to a more stable market and encourage further institutional involvement, ultimately benefiting the entire crypto ecosystem.