The crypto space is buzzing as the deadline for the SEC's decision on the spot Ethereum ETF looms this week, with a decision expected as early as May 23. Adding to the excitement, top industry analysts have increased the probability of approval from 25% to 75%. This optimistic outlook has already had a notable impact on the market, with Ethereum's price surging more than 20% in just one day.
Gamza KhanzadaevProminent cryptocurrency expert Raoul Pal has weighed in on the potential of this development. He highlighted a scenario where substantial demand for the ETF, coupled with the fact that 30% of Ethereum remains staked and ongoing burning processes make supply deeply negative, could create what he describes as a "banana zone squared."
This term refers to a period of exponential growth and market imbalance driven by rapid crypto adoption and significant increases in market capitalization.
According to Pal, if these conditions come to fruition, Ethereum could see unprecedented price increases. He suggests that this scenario is already unfolding and predicts that non-fungible tokens (NFTs) will experience a massive boom once ETH reaches a new all-time high.
This prediction is particularly noteworthy given Ethereum's previous peak of $4,868, achieved on Nov. 8, 2021. With the altcoin's price currently less than 29% away from this ATH, the stage seems set for significant market activity.
Pal's forecast adds a layer of excitement to the already heated discussions surrounding Ethereum and its potential. As enthusiasts eagerly await the SEC's decision, the prospect of a new ATH and subsequent NFT explosion is fueling fear and greed within the crypto community.
If Pal's predictions hold true, the coming weeks could mark a historic period for Ethereum and the broader digital asset market.
Arman Shirinyan
Alex Dovbnya
Vladislav Sopov
Dan Burgin
U.Today Editorial Team