BlackRock has just propelled ether into a rally that brought its price to its highest level in more than 7 months. Number of wallet addresses, market capitalization, prices, etc., everything quickly evolved in less than 24 hours for ETH this Thursday, November 9. Behind these profound changes lies a major cause. Confirmation of plans by BlackRock, the world’s largest asset management company, to offer a spot Ethereum ETF.
10% increase for Ethereum’s native crypto in less than 24 hours
This Thursday, November 9, ETH experienced a surge in its price which went from 1900 dollars to 2126 dollars in less than 24 hours. The king of altcoins thus steals the spotlight from bitcoin which, during the same period, only experienced an increase of 3%.
There 10% increase in ETH in less than 24 hours was triggered by the appearance of a file titled “iShares Ethereum Trust” on the Delaware Division of Corporations website. Seen as confirmation of BlackRock’s Ethereum Spot ETF project, this news sparked a rapid rally in ETH prices and interest in the crypto.
According to data provider Santiment, over the past four weeks, the number of small wallet addresses has exceeded 100,000, breaking a record. Santiment also noted that there has been a large increase in the number of wallet addresses owning between 0.1 and 10 ETH and over 10,000 ETH.
In total, ether has seen a 38% increase in its number of wallet addresses since rumors circulated about BlackRock’s request for an Ethereum spot ETF. According to some analysts like Ali Martinez, ETH could even exceed $2,500 very quickly.
The ETH market is growing and slowing the growth of small tokens
The rise in the price of ETH boosted its market capitalization which quickly rose to $254 billion. This growth impacted Chainlink which experienced a 100% increase over the past three weeks and MATIC which saw its value move towards 1 dollar.
However, the rise in the price of ETH has slowed the inflow of capital into small value tokens. The growth of several altcoins such as Stellar (XLM), Ripple (XRP), Dogecoin (DOGE), Uniswap (UNI), Toncoin (TON), etc. therefore stopped. With the momentum brewing in crypto markets following BlackRock’s ETF filings, BTC and ETH could soon be favored over traditional assets like gold.
Moreover, it is not excluded, as analyst Lark Davis indicated, that BlackRock requests ETFs for other cryptocurrencies, such as Chainlink, Solana, etc. If this were done, investor confidence would increase tenfold and cause an unprecedented influx of institutional money into the cryptocurrency markets.
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