While Ethereum is regaining the ground thanks to bullish projections for the Q1, there is still no definite outlook on the potential of AI tokens.
Ethereum is expected to deliver good results in the next quarter, and AI tokens have also proved to be resilient and dominant in the social sphere. ETH and AI tokens have been exhibiting high levels of positive slope in recent months.
Grayscale Research expects an increased impact from the newly listed spot Ether exchange-traded products (ETPs) in the U. S. market in the next quarter.
This comes after the SEC approved Form 19 billion -4 submissions in late May for multiple issuers to list Ether ETPs on U. S. exchanges.
ETPs Poised to Boost Ethereum (ETH)
According to Grayscale’s market analysis, the trading of ETP is expected to begin in Q3 2024.
After spotting Bitcoin ETPs in January, Grayscale Research anticipates these Ether products will attract modest net inflows, though potentially less than those of Bitcoin.
This might offer price support to Ethereum and tokens built on top of it.
The new spot Ether ETPs will be able to showcase Ethereum as having a unique modularity in its design that enhances UX and cost-effectiveness, unlike other blockchains.
In addition, Ethereum has the biggest decentralized finance (DeFi) sector and acts as a primary hub for tokens.
ETPs’ approval may lead to increased focus on and demand for Ethereum, hence increasing activity and value for Layer 2 tokens like Mantle, DeFi platforms like Uniswap, Maker, Aave, and critical assets like Lido, a staking protocol.
One clear sign that Ethereum is becoming more popular is its stable price performance relative to the declining BTC prices.
While ETH and BTC are highly correlated, different market situations have affected Ethereum (ETH) less than Bitcoin (BTC)
Although there are spot Ether ETPs would be a new phenomenon, Grayscale Research expects other ongoing market themes to remain relevant in the next quarter.
There will be an emphasis on the possibility of combining blockchain with Artificial Intelligence (AI) advancements.
Assessing the Impact: Concerns: Are AI Tokens Thriving?
The current statistics suggest that the share of tokens connected with artificial intelligence is high within the context of social media.
Additionally, considering the tokens based on AI that include RNDR, TAO, and FET, the year to date price performance has done better than the market index implying that the hype can in fact be beneficial to investors in the future.
Disclaimer: Cryptocurrency investments are considered high-risk and may result in an entire lack of capital; the facts provided are widespread, and beginners are not advised to spend money on shares.
