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- Ethereum Layer 2: After ETF approval, expect a surge in tokens like Arbitrum, Optimism, and Mantle.
- Ethereum Coin Memes: Meme coins like Shiba Inu, Pepecoin, and Floki Inu could experience significant growth.
- Ethereum Restaking: With ETF endorsement, restaking protocols like EigenLayer promise additional yield for ETH holders.
An Ethereum spot ETF has been officially approved, with the price of ETH briefly touching $3,945. With this endorsement, the crypto sector related to Ethereum will potentially experience an appreciation in price. There are 3 crypto sectors that could potentially be impacted by the approval of a spot Ethereum ETF.
Ethereum Layer-2
Layer 2, as a protocol that seeks to help Ethereum become scalable, has the potential to rally after the approval of a spot Ethereum ETF. After Ethereum (ETH) shows price strength, there is a chance that rotational profits will flow to layer-2 governance tokens.
Tokens that fall into this category include Arbitrum (ARB), Optimism (OP), and Mantle (MNT). Other new tokens launched this year may also be worth paying attention to such as Mode Network (MODE), StarkNet (STRK), and Manta Network (MANTA). Apart from layer-2 projects that already have governance tokens, other layer-2 projects will and have the potential to have tokens such as zkSync (ZK), Blast (BLAST), and Base.
Ethereum Coin Memes
Starting with Pepecoin (PEPE) which touched an all-time high (ATH) in the same period as ETH’s strength ahead of the ETF endorsement, indicating the potential for meme coins on the Ethereum network to experience a rally. Meme coins on the Ethereum network with a market capitalization above $1 billion include Shiba Inu (SHIB), Pepecoin (PEPE), and Floki Inu (FLOKI).
Meanwhile, other Ethereum network memes with capitalization under US$1 billion may have higher upside potential, but also higher risks. These memecoins include Maga (TRUMP), Mog (MOG), Apu Apustaja (APU), and Wojak Coin (WOJAK).
Ethereum Restaking
Ethereum restaking is a new sector that is also one of the largest contributors to total value locked (TVL) in the DeFi category. This sector has the potential to experience appreciation after the endorsement of ETFs because it is a source of additional yield for ETH holders.
EigenLayer, the sector’s pioneering protocol became the second largest protocol in TVL ($18.7 billion), behind liquid staking protocol Lido. EigenLayer has launched the EIGEN token, but it cannot be traded until September 2024. In addition, there are liquid restaking protocols that have launched governance tokens such as Ether.fi (ETHFI) and Renzo Protocol (REZ). Other protocols that will also have tokens include Kelp DAO, Swell Network, Puffer Finance, Eigenpie, and Bedrock.
The future of Ethereum’s crypto sectors post-ETF approval appears promising. Layer-2 protocols, meme coins, and restaking sectors are likely to experience substantial growth. This endorsement signals a new era of opportunity and innovation within the crypto industry, paving the way for exciting developments and sustained progress.