Growing Investor Enthusiasm
The price of Ether (ETH) may be set to breach $4,000 in the coming days as investor optimism grows ahead of United States President-elect Donald Trump’s inauguration on January 20. This coincides with the last day in office for Securities and Exchange Commission Chair Gary Gensler, who has been associated with decreasing regulatory scrutiny on the crypto industry.
ETH Outperforms BTC in Open Interest
Ether (ETH) has outperformed Bitcoin (BTC) in open interest, with over $8.9 billion worth of open contracts compared to Bitcoin’s $6.7 billion. This dynamic may put Ether on track to rally above $4,000 before January 20, when Trump will take office.
According to a report by Block Scholes and Bybit Analytics on November 28, the current decline in Bitcoin open interest suggests it is a result of "considered repositioning," not mass liquidations. This could indicate that investors are positioning themselves for potential gains in Ether ahead of Trump’s inauguration.
Bybit Analysts See $4,000 on the Horizon
A Bybit spokesperson told Cointelegraph: "Bybit analysts see $4,000 on the horizon for ETH before Jan 20." This prediction is based on growing investor interest and expectations of positive crypto regulations leading into 2025, which may set it up for a rally above $4,000.
Investor Optimism Grows Ahead of Trump’s Inauguration
The growing optimism among investors comes as the market capitalization of Dogecoin (DOGE) has surpassed that of German carmaker Porsche. This is partly driven by Elon Musk’s endorsements and a potential exchange-traded product (ETP).
DOGE Surpasses Porsche’s Market Capitalization
Dogecoin (DOGE) has risen 175% during the past month to a market capitalization of $57.8 billion, surpassing Porsche’s $56.1-billion market cap as of November 27.
The memecoin has had significant momentum in 2024, partly driven by continued social media endorsements from billionaire Elon Musk. Musk’s recent involvement in creating the Department of Government Efficiency (DOGE), an agency aimed at cutting government spending and streamlining regulations, has further stoked interest.
Elon Musk’s Involvement Drives DOGE
Musk’s involvement in DOGE has driven its price up significantly. His recent tweet about the potential launch of a DOGE ETP has also contributed to its growth.
Increasing Value Growth
The Ethereum ecosystem is seeing increasing value growth, showing more investor interest in Ethereum-native assets. Ethereum layer-2 networks have reached a new all-time high of over $51.5 billion in cumulative total value locked (TVL).
This marks an over 205% increase in cumulative TVL from just $16.6 billion in November 2023, according to L2Beat data.
Record-Breaking TVL
The record-breaking TVL is a testament to the growing interest in Ethereum layer-2 networks. This has led to increased value locked in these networks, making them more attractive to investors.
Charles Hoskinson’s Prediction
Cardano founder Charles Hoskinson said decentralized finance (DeFi) in the Bitcoin ecosystem will eclipse all other crypto DeFi within two to three years. He touted the potential for Bitcoin DeFi while making a bold price prediction and highlighting a new model for bridging Bitcoin without using centralized exchanges.
Hoskinson’s Bold Prediction
Hoskinson’s prediction is based on his experience working in the Bitcoin space and his understanding of its potential. He believes that Bitcoin DeFi will be more attractive to investors due to its security and scalability.
According to data from Cointelegraph Markets Pro and TradingView, most of the 100 largest cryptocurrencies by market capitalization ended the week in the green.
Stellar XLM Token Rises Over 81%
The StellarXLM token rose over 81% as the week’s best performer, followed by The SandboxSAND metaverse token, up over 80% during the past week.
Total Value Locked in DeFi
The total value locked in DeFi has also seen significant growth. According to DefiLlama data, this has led to increased activity and interest in these platforms.
Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights, and education regarding this dynamically advancing space.
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