Ether, the native cryptocurrency of the Ethereum network, has recently surpassed the US$3,000 milestone for the first time since April 2022, signaling the onset of what many in the industry are describing as “altcoin season.”
Altcoin season denotes a period when cryptocurrencies witness substantial value increases in comparison to Bitcoin, often characterized by heightened market interest, investment, and price appreciation of altcoins. During this time, investors and traders may divert their attention from Bitcoin to altcoins to seek higher returns, driven by speculation, new project developments, or broader market trends.
On Tuesday, Ether outperformed Bitcoin and other major cryptocurrencies and briefly climbed above US$3,000 before retracting to US$2,918 by 1:30 p.m. ET, according to CoinMarketCap data. With a 10.8% increase for the week, Ether’s rise has been linked to the potential approval of a spot-based Ether exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC), which has the potential to attract traditional and institutional investors.
Anticipation over the approval of a spot Ether ETF has been reinforced by the success of newly launched Bitcoin ETFs, which have already garnered substantial investments since their debut last month. Furthermore, positive sentiment surrounding Ethereum’s upcoming network upgrade, known as the Dencun upgrade, has also contributed to Ether’s bullish trend.
Scheduled for March 13, the Dencun upgrade aims to implement Ethereum Improvement Proposal (EIP) 4844, introducing proto-danksharding to streamline transactions and reduce costs by storing some data off the blockchain. This technical enhancement is anticipated to accelerate transaction speeds and is a contributing factor to the optimism surrounding Ether’s performance.
