The recent approval of a spot Bitcoin ETF caused a surge in ETH price, reaching a year-to-date high of $2,715, a 77% increase. However, following the approval, ETH price has declined along with the rest of the market.
According to data from on-chain analytics firm Glassnode, despite the current downturn, Ether has shown stronger performance compared to Bitcoin (BTC) in various aspects.
As we enter the era of web 3.0, it is important to understand the differences between web 1.0, 2.0, and 3.0. Web 3.0 brings a new landscape of possibilities, including the integration of Internet of Things (IoT) technology.
The Evolution of the Web: From 1.0 to 3.0
In the ever-changing landscape of the internet, the emergence of Web 3.0 has brought about significant differences compared to its predecessors, Web 1.0 and Web 2.0. This introduction to Web 3.0 explores the key distinctions between these three versions of the web.
One of the main differences between Web 2.0 and Web 3.0 is the increased focus on the Internet of Things (IoT). With the integration of smart devices and technology, Web 3.0 offers a more interconnected and seamless online experience.
But the evolution doesn’t stop there. The differences between Web 1.0, Web 2.0, and Web 3.0 highlight the ever-changing nature of the internet and its capabilities. As we move towards Web 4.0, we can expect even more advancements and transformations in the digital landscape.
The NUPL metric reflects positive market sentiment towards ETH in web 3.0
Despite a 14% drop in price over the past week, investor confidence in Ether remains high. This is evidenced by the record-high amount of profits locked in by ETH holders, indicating a significant shift in profitability.
According to Kohn, one of the most significant indicators of this positive sentiment is the Net Unrealized Profit/Loss (NUPL) metric for short-term investors. This metric, which measures the potential profit or loss based on the acquisition price of coins, has recently surpassed 0.25 for the first time since the all-time high in November 2021. This suggests a growing sense of optimism among holders.
This could mean one of two things: either ETH is experiencing a surge in positive market sentiment, or it may be reaching a point where profit-taking and distribution pressure are likely to occur.
Trader Ken also expressed optimism, noting that the “ETH/BTC confluence was nearing a breakout” with Ether’s price above $2,240.
Ethereum Dominates Derivatives Market in Web 3.0 Era
The recent resurgence of Ethereum’s market performance, as shown in Glassnode’s report, indicates a potential shift in capital flow within the cryptocurrency market. A closer look at derivatives data reveals that in January 2022, Bitcoin’s perpetual swaps accounted for 55% of open interest, but this has since risen to 66.2%. On the other hand, ETH’s open interest dominance has decreased from 45% to 33.8% between the years 2022 and 2024, according to Glassnode.
However, following the approval of ETFs, ETH has regained some market share, with its dominance rebounding to approximately 40%. This has sparked speculation among investors about the potential introduction of a spot Ethereum ETF.
Chief Investment Officer for Yield App, Lucas Kiely, believes that with the recent clarity on Bitcoin ETFs and the seven upcoming deadlines between May and August, we may see the introduction of Ethereum ETFs sooner than expected in the Web 3.0 landscape.
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