The crypto market appears to be on the verge of a bull run, with excitement spreading quickly across the industry. There are many factors contributing to this sentiment, including growing positive sentiment, more integration into the traditional financial system, and the introduction of new assets like the Ethereum ETF.
Ethereum ETF
The Ethereum ETF approval will increase demand for the world’s largest and most popular Dapp ecosystem. ETFs are the ideal solution for institutional investors seeking to gain access to the crypto market without the risk of future regulatory biteback. As such, they are seen as a valuable addition by large fund managers who are desperate to accommodate the growing demand for crypto market exposure.
Potential Growth
The recent approval of Bitcoin ETFs has created high demand for Bitcoin as these funds seek to purchase the asset to back their actions. Already, Bitcoin ETF funds have begun to purchase and hold 2X the amount of Bitcoin created daily, leading many analysts to predict future gains.
The same situation is apparent with the pending Ethereum ETF. Ethereum is a massive ecosystem that supports thousands of dapps, tokens, and networks. Demand created for the ETF has the potential to shift the landscape of the market and create a scenario where Ethereum surpasses Bitcoin’s market dominance. Here are the top 10 cryptos set to gain from Ethereum ETF approval.
1. Ethereum (ETH)
Ethereum will gain much from the ETF approval. The network provides the infrastructure for thousands of applications and networks. Over the years, Ethereum has grown from an L1 blockchain with few dapps to a massive ecosystem. Notably, this growth wasn’t without struggles, including heavy congestion, high fees, and SEC run-ins.
Thankfully, Ethereum has managed to stay ahead of these issues and continues to provide innovative blockchain solutions to the market. The network’s ETH2.0 upgrade helped to reduce congestion, fees, and power consumption by eliminating the PoW consensus mechanism in favor of a PoS (Proof-of-Stake) option.
Ethereum will see heavy demand as ETF fund providers will require this token to back their offerings. This demand will increase the value of Ethereum and entice even more projects to its blockchain and L2 supporters. All of these factors make ETH a smart buy-and-hold for traders seeking future gains.
2. Uniswap (UNI)
Another token that many analysts predict will see increased demand following an ETF approval is Uniswap. Uniswap launched in 2018 against a backdrop of CEX (Centralized Exchange) competition. Its founder, Hayden Adams, wanted to create a fully functional decentralized trading protocol that could help solve many of the problems that CEXs brought to the market, including gatekeeping, high fees, and lack of selection.
Uniswap is an innovative AMM (Automated Market Maker) that eliminates the need for an order book. Instead, it leverages smart contracts to link traders and buyers autonomously. This approach enables decentralized P2P trading without the need to have a centralized pricing book.
Source – Uniswap
This pioneering DeFi platform was the first DEX to launch and gain popularity within the Ethereum ecosystem. As such, it quickly grew to be the largest DEX in operations alongside the growth of Ethereum. Notably, it was the first DEX to introduce open liquidity pools to the market. Those pools enabled projects to gain direct access to public funds without having to undergo the intense approval processes that CEXs require.
This open approach allowed Ethereum developers to create and fund innovative concepts that have since reshaped the entire DeFi sector. Additionally, the network has serious backing including Ric Burton, Andreessen Horowitz, Paradigm Venture Capital, Union Square Ventures LLC, and ParaFi. All of these factors position Uniswap for success moving forward.
3. Polygon (MATIC)
Polygon entered the market in 2017 as MATIC. The platform was unique at the time for many reasons, including being among the first to integrate Zero-Knowledge (ZK) technology. This technology improves scalability and privacy while lowering users’ costs. In 2021, MATIC rebranded to Polygon.
Polygon offers high programmability and scalability to enterprise-level clientele. The network is fully ERC-compatible and provides developers with a secure alternative. It supports advanced DeFi and Dapp smart contract deployment and offers a full suite of development tools to users.
Polygon has some major upgrades in the works and is backed by some huge firms including Sequoia Capital India, Tiger Global, and Softbank Vision Fund. The approval of an Ethereum ETF would boost demand for Polygon’s services across the business sector where it provides a reliable way for businesses to create complex purpose-built Dapps that make a difference.
4. Synthetix (SNX)
Synthetix entered the market in 2017. It was created by Kain Warwick under his pseudonym Haven (HAV) as a new form of DEX and asset creation option. The DEX offers a variety of features that make it easy to create and trade tokens with others. Notably, Synthetic introduces a streamlined way to create synthetic assets that live on the Ethereum blockchain.
Users can gain access to any market using synths. Some synths represent gold, silver, stocks, commodities, and much more. The assets can be set up like indexes to track a set of assets or a single option. To accomplish this task efficiently, Synths use Chain Link oracles to track the market value, ensuring timely prices.
Notably, Synths make it easier to bring Real-World Assets onto a blockchain. Tokenized assets provide a streamlined trading experience, more transparency, and the ability to track them in real time. Already, there are tokenized homes, luxury items, cars, debt, and much more.
Synthetix lives on the Ethereum and Optimism networks. This structure enables it to scale vertically without bogging down the mainnet. The approval of an Ethereum ETF would help to bolster Synths and its ecosystem. It will also drive innovation and could even lead to an Ethereum ETF synth launching in the future.
5. Cartesi (CTSI)
Cartesi is a popular Ethereum scaling solution that entered the market in October 2021. This L2 platform separates the computational aspects or chain validation to reduce congestion. This strategy remains one of the most effective ways to scale L1 networks and provides additional benefits, such as added features.
Cartesi is a chain-agnostic L2 that acts as a liquidity bridge between networks. Additionally, it enables developers to program in Linux rather than Solidity, an Ethereum core coding language. As such, more developers can create immersive and low-cost dapps using Cartesi.
The network introduces Caresi roll-ups, a feature that helps protect privacy while driving demand for CTSI tokens. In the coming weeks, Cartesi could see a major boost as the Ethereum ETF approval nears, raising interest in its privacy and programming advantages.
6. Compound (COMP)
Compound is a pioneering DeFi ecosystem. As one of the first successful DeFi protocols in operation. Compound remains a top-performing option that traders should consider. The network entered the market in 2017 and was the first to introduce the concept of yield farming.
Yield farming is similar to staking in that you secure rewards for providing liquidity to a pool. The main differences are that liquidity farmers don’t have any lock-up period, and APYs vary. As such, yield farmers must migrate their tokens between pools to secure the highest ROIs. Today, this feature is common in the market thanks to Compound.
Compound provides P2P lending services as well. Users can secure rewards in the form of interest paid on their lent-out crypto. You can also use COMP tokens for liquidity mining. This flexibility and its positioning as one of the original DeFi networks means that Compound could see a potential boost in users following an ETF approval.
7. Aave (AAVE)
Aave is another p2p lending protocol that launched in 2020 on the Ethereum network. One of the most unique factors of Aave is the introduction of flash loans. These loans eliminate the need to provide collateral to secure access to funds. Interest and fees get repaid in a single transaction using this option, reducing steps and improving capital efficiency.
Aave leverages Chain Link oracles to track assets and pricing. It integrates smart accounts to drive returns further. There’s also an automated treasury management protocol that supports a host of different strategies including conversion into preconfigured assets.
Aave V3 recently dropped its upgraded version which provides support for a large selection of cryptocurrencies, making it a liquidity hub for the community and further cementing its place as a valuable tool within the Ethereum economy. As such, Aave is set to secure new users following the ETF launch.
8. Optimism (OP)
Optimism is the most popular L2 rollup scaling solution in the Ethereum space. This unique network introduces Optimistic roll-up technology to improve scalability and protect privacy. The Optimism ecosystem has grown to be an innovative hub in the economy and now hosts +43 dapps.
Optimism continues to draw attention due to its low fees, programmability, and support. The network offers full programmability via an OP stack and open-source code. It makes it easy for anyone to create, deploy, and manage digital assets, sub-networks, and NFTs.
Developers can appreciate the easy-to-navigate interface and the ability to create roll-up test networks. There are also some cool funds and features that enable users to secure rewards for helping the project or even their community. As such, Optimism remains one of the best options for those seeking high performance.
9. Chainlink (LINK)
Chain Link is one of the oldest protocols on this list. The network entered service in 2013 as a blockchain service provider. In 2019, the network launched its first oracles. These oracles play a vital role in connecting blockchains and real-world data. Notably, Chain Link was among the first decentralized Oracle networks.
This structure helped the network overcome some of the limitations of these sensors, including wrong data. Chanlinks systems cross-reference oracle data and can even eliminate faulty oracles from their computations to prevent bad info from entering the blockchain.
The LINK token is an ERC677 token that will see growing demand once the Ethereum ETF receives approval. Today, Chain Link is a crucial component of the blockchain space where its oracle provides timely data. Notably, Chain Link remains one of the most popular and well-known blockchains in the market. The Ethereum ETF will only increase demand for its services.
10. Bitcoin (BTC)
Bitcoin is another cryptocurrency that will see further demand following the Ethereum ETF. This demand will come from increased public awareness of cryptocurrencies. As more traditional funds lean towards decentralized assets, it will help to educate users. Additionally, it will help to lay the foundation for a future crypto economy.
Bitcoin, as the world’s first cryptocurrency, will benefit from the raised awareness amongst the general population. Additionally, the increased knowledge of Ethereum will lead to more interest in Bitcoin, the differences between them, and which is a better fit for your portfolio. All of these discussions will lead to higher demand for Bitcoin in the future.
Notably, Bitcoin has seen some recent upgrades. Now, it can be wrapped and traded within the Ethereum ecosystem, enabling HODLers to unlock liquidity. These improvements add value to both projects while fostering an innovative atmosphere geared toward improving the overall user experience.
Prepare for the Ethereum ETF and Prosper
Those who witnessed the Bitcoin ETF approval understand that these actions create strong waves in the market. If positioned properly, a savvy trader can catch these trends and secure positive returns. For now, it’s wise to monitor the Ethereum ETF developments to ensure you don’t miss the boat.
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