A cryptocurrency analyst made a rather cryptic prediction, suggesting that approval of Ethereum Spot ETFs by the US Securities and Exchange Commission (SEC) may unleash a modern wave of “animal spirits”. This term in crypto is often used to describe the irrational exuberance and optimism that drives financial markets.
Ethereum Spot ETF to reignite animal spirits
WX (formerly Twitter) post On May 22, a cryptocurrency analyst identified as a “DeFi villain” made a bold prediction, predicting a cryptocurrency resurgence Bull run altcoin season upon approval by the SEC Ethereum spot ETF. The analyst revealed that the approval could unleash “animal spirits”, fueling renewed demand and positive market sentiment, likely leading to a bull market.
The analyst provided a long list altcoins which outperformed and experienced extraordinary growth in 2021. These increases caused the market capitalization of each of their companies to escalate from just hundreds of millions to billions in a matter of days and months.
Among the cryptocurrencies highlighted by DeFi Villain, some notable altcoins have seen massive increases in market capitalization, including Dogecoin (DOGE)THORChain (RUNE), Filecoin (FIL), Binance Coin (BNB), Axie Infinity (AXS), Shiba Inu (SHIB) and others.
According to a cryptocurrency analyst, Dogecoin saw a 10x escalate in a single day in January 2021. While RUNE’s market capitalization increased from $200 million to $5 billion in just five months.
One of the most significant increases was observed in Filecoin which almost went live Ethereum market cap. During the 2021 altcoin bull run, the cryptocurrency has surged close to an impressive $400 billion mark.
Other cryptocurrencies, such as AXS, grew in capitalization from $200 million to $10 billion, and its fully diluted value (FDV) at one point exceeded $43 billion. Additionally, Binance Coinwhich was already worth $6 billion at the beginning of 2021 and was among the top 20 most popular cryptocurrencies, saw a mega 8x pump in 20 days, reaching a staggering $50 billion in February 2021.
Even popular meme coins like Shiba Inu (SHIB) grew strongly, jumping from $4 billion to $40 billion in less than a month. Ethereum Cash (ETC) also saw its market capitalization escalate from $600 million to $17 billion in five months.
These huge increases during Running of the Bulls in 2021 highlights the potential of altcoins in the cryptocurrency market and how wildly they can grow once altcoin season arrives and Bitcoin’s dominance shifts towards smaller cryptocurrencies.
DeFi Villain has predicted for which the final stage meme coins will likely be “vertical and brutal,” suggesting that these volatile cryptocurrencies could have another massive rally to modern highs this market cycle.
ETF Approval Overturns Previous SEC Security Claims?
Over the last few months US SEC made claims suggesting that Ethereum, the second largest cryptocurrency, was considered a security. However, after the authorization of Ethereum Spot ETFs, the SEC finally recognized Ethereum as a non-security instrument.
We will contact the regulator regarding this matter contradictionPaul Grewal, Chief Legal Officer (CLO) of Coinbase revealed that if Ethereum lacking a “contract or contractual obligation” is no longer considered a security by the SEC, then Bitcoin (BTC), which functions similarly without the above contracts, should also not be a security.
Grewal raised an significant question about the classification of 12 other cryptocurrencies to which they can be compared Ether and Bitcoin in terms of their non-security treatment by the SEC. Coinbase CLO revealed that the implications of these 12 other cryptocurrencies are being considered securities despite the lack of a contractual agreement or commitment, the question arises about the possible lack of transparency in SEC regulations and inconsistent regulatory approach to different crypto assets.
Featured image created with Dall.E, chart from Tradingview.com
