Why Ethereum’s Market Capitalization is Surging and What to Expect Next

Ethereum’s market capitalization has been on a steady rise, reaching impressive heights almost catching up with the “Spider S&P 500 (SPY)”, the number one market capitalization among U.S. stock exchange-traded funds (ETFs). Currently, if Ethereum’s value increases by just 1%, it will surpass SPY in market capitalization.

One of the key reasons behind Ethereum’s surge is the overall growth in the virtual asset market, particularly in Bitcoin, along with the upcoming “Denkun Upgrade” scheduled for the 13th. This upgrade is anticipated to significantly lower transaction fees on the Ethereum network by enhancing network scalability.

According to CoinMarketCap, Ethereum is trading at $3897 as of 1:30 p.m., marking a 2.62% increase from the previous day. The cryptocurrency has witnessed a remarkable 46% surge last month and is continuing its upward trajectory with a 17% increase this month, currently reaching its highest price level since January 2022.

Ethereum’s market capitalization has also surpassed reputable entities such as the Louis Vuitton Moet Hennessy Group, known for luxury brands like Mastercard, Louis Vuitton, Christian Dior, and Tiffany. With just a slight increase in value, Ethereum is poised to overtake SPY, the leading U.S. stock market-listed ETF in terms of market capitalization.

The Denkun upgrade is not the only factor driving Ethereum’s price surge. The imminent approval of the Ethereum spot ETF in May is also contributing to the increase in prices. Key players like BlackRock, Fidelity, and Galaxy Digital have applied for Ethereum spot ETFs, awaiting the review of the US SEC.

Experts in the crypto space, like Juan Leon from Bitwise, predict further growth for Ethereum in the coming months. Leon suggests that Ethereum prices could potentially reach $8,000, $10,000, or even higher within the year, indicating a bullish outlook for the cryptocurrency.

While Ethereum has often lived in the shadow of Bitcoin’s popularity, its recent performance and upcoming developments indicate a promising future for the cryptocurrency, making it one to watch in the evolving landscape of digital assets.