The crypto space is buzzing as the deadline for the SEC's decision on the spot Ethereum ETF looms this week, with a decision expected as early as May 23. Adding to the excitement, top industry analysts have increased the probability of approval from 25% to 75%. This optimistic outlook has already had a notable impact on the market, with Ethereum's price surging more than 20% in just one day.
card
Prominent cryptocurrency expert Raoul Pal has weighed in on the potential of this development. He highlighted a scenario where substantial demand for the ETF, coupled with the fact that 30% of Ethereum remains staked and ongoing burning processes make supply deeply negative, could create what he describes as a "banana zone squared."
This term refers to a period of exponential growth and market imbalance driven by rapid crypto adoption and significant increases in market capitalization.
One more thing I've been talking about for a while... what the hell happens to the price of ETH if there is big demand for the ETF and 30% remains staked (off market) and burning makes supply deeply negative as activity rises.... that could create a banana zone squared...
— Raoul Pal (@RaoulGMI) May 21, 2024
According to Pal, if these conditions come to fruition, Ethereum could see unprecedented price increases. He suggests that this scenario is already unfolding and predicts that non-fungible tokens (NFTs) will experience a massive boom once ETH reaches a new all-time high.
ETH to USD by CoinMarketCap
This prediction is particularly noteworthy given Ethereum's previous peak of $4,868, achieved on Nov. 8, 2021. With the altcoin's price currently less than 29% away from this ATH, the stage seems set for significant market activity.
card
Pal's forecast adds a layer of excitement to the already heated discussions surrounding Ethereum and its potential. As enthusiasts eagerly await the SEC's decision, the prospect of a new ATH and subsequent NFT explosion is fueling fear and greed within the crypto community.
If Pal's predictions hold true, the coming weeks could mark a historic period for Ethereum and the broader digital asset market.
