Ethererum Primed for Institutional Surge Following CME Ether Futures Launch
Total value locked (USD) in decentralized finance (DeFi) is currently at $35.51B after hitting highs of around $40B along with Ethereum recently having climbed to ATHs, with speculation growing that supply shortages could elevate prices even further following the recent correction.
Unfortunately, that has also led to transaction costs within the Ethereum network reaching ATHs, reflecting the demand for ERC-20 based tokens, stable coins, and the burgeoning DeFi niche.
ProBit Exchange has long been a supporter of the red hot DeFi space, and our communities’ returns and interest mirror that particularly in the IEO space where ProBit Exchange was recently ranked #7 among the top IEO platforms.
Carnomoly, a popular DeFi disrupter in the automotive space, has sold out TWO straight rounds of IEO on ProBit Exchange and is currently running an additional round having raised $400,000. DEX Nagaswap has also raised $500,000 highlighted by a 20-second closeout in the first round of offerings.
Layer 2 DEX and zkRollup-based solution ZKSwap will be featured during the upcoming Exclusive on March 2 with 50% discounted subscriptions so there are tons of opportunities to get involved in the DeFi movement on ProBit Exchange and with low entry barriers.
The market currently holds an insatiable appetite for new DeFi tokens, and more broadly, the Ethereum framework, and its potential to transform finance.
Alt Coins Taking Centre Stage
Recent developments surrounding traditional brokerages restricting investor access have painted a rosy picture for DeFi with ETH enjoying this elevated positive sentiment. Inspired growth within the Ethereum protocol has also contributed to growth in its competitors who operate to remediate similar problems from a different lens.
Many De-Fi projects such as LINK, SUSHI, AAVE, have all seen substantial growth within this period.
Despite Bitcoin still being the primary vehicle for crypto adoption, with the vast majority of press and belief still heavily skewed in its favour, ETH is quickly gaining market share. Traders who either felt like they missed out on early adoption of BTC are jumping on the ETH bandwagon and supporting the Ethereum protocol.
Additionally, increased interest in ETH and its core value propositions has led traders to dig deeper into other protocols and see what’s underneath the rug. This is a favourable outcome for the crypto space, as competition will inspire rapid evolution of Ethereum and other DeFi protocols, ultimately producing more palatable and effective networks than can stand the test of time.
Crypto OGs may associate the ICO era with the “golden days,” where startups could get funding easily and quickly. Despite this funding solution producing such a result, it also led to half-baked ideas and scams disguised as the next big thing. Venture capitalist funding solutions will likely produce less shitcoins and protocols through some semblance of due diligence and compliance, not necessarily demanded in previous funding eras.
Ethereum’s “Future” Feature Rollout
Ethereums (ETH) price has grown rapidly by over 25% over the last week and has been attributed to new capabilities of excessive leverage. Topping at around $1.7k, this run has also been linked to anticipation prior to the now available CME Futures.
Futures functionality on Ether launched last Sunday on derivatives exchange CME, introduced to capitalize on increasing institutional interest in this burgeoning asset class.
While Bitcoin remains the leading, preferred store of value mechanism within the crypto-asset realm, Ethereum has quickly become recognized for its reliable financial infrastructure. These developments in derivatives trading on the CME offer an avenue where investors can hedge Ether exposure and establish bearish positions.
Huge volume out the gate wasn’t expected, similarly to when Bitcoin launched futures trading a few years ago, but this will contribute to asset traction in the coming months and years. Despite volume increases not being expected, ETH-USD saw a five billion increase in trading volume following the futures rollout.
JP Morgan noted that Ether futures’ listing could cause price decreases in the underlying currency, referencing Bitcoins history to justify these claims. However, market maturity, different macro conditions, and the size and interest of the players within the Ethereum realm could serve as a valid argument for a growth thesis.
Despite so-called “Ethereum killers,” showing increased coverage and exposure, the stage is set for a massive ETH bull run. Don’t be caught on the sidelines contemplating what could have been.
