The crypto market remains on a path to gradually recover its lost ground. Last week, U.S. Bitcoin spot ETFs saw strong net inflows, while Ethereum spot ETFs experienced a net outflow. However, a positive development for Ethereum is that its rollups reached a new all-time high in daily transactions, indicating they are steadily gaining more traction.
The crypto market has favored Bitcoin and Ethereum this year, while some investors have risked everything on cryptocurrencies with little potential. Given the market’s momentum-driven nature and the upcoming Ethereum spot ETFs, we see no reason for this trend to change going forward. Additionally, we examine unlocks, from which Bitcoin and Ethereum are also spared.
Avalanche, despite its standing as the 10th largest cryptocurrency and a significant player among Layer 1 blockchains with smart contract capabilities, faces a grim outlook. With a nearly $40 billion fully diluted market capitalization, its onchain activity is declining, lagging behind competitors like Solana and Ethereum’s rollups. There is simply not much to celebrate for AVAX holders.
A week has passed since Proto-Danksharding was implemented on the Ethereum blockchain. This upgrade has transformed Ethereum and its rollup ecosystem, setting the stage for expansion into brand new territories. Our advice? It is not wise to go against this trend by placing bets on so-called “Ethereum killers.”