Crypto trader Duncan has explained why he is “extremely long” on Ethereum (ETH) despite the crypto token’s recent drop to around $3,400. He emphasized the Spot Ethereum ETFs, which he believes could spark a significant rally for ETH.

A ‘Significant Upside Repricing’ Could Be On The Horizon ForTHEEthereum

Duncan mentioned in an X (formerly Twitter) post that he believes that the market is way too bearish at the moment and that there could be a “significant upside repricing” for Ethereum if the Spot Ethereum ETF inflows are “anything but horrible.” He further explained why he thinks the Spot Ethereum ETFs will be a huge success, contrary to what some might think. 

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First, he noted that asset managers view the crypto ETF space as a “new frontier” that could generate billions in management fees for them over the next ten years. He highlighted how BlackRock has had its most successful product launch ever with its Spot Bitcoin ETF, which he claims is already generating $45 million in fees yearly, just six months after its launch. 

Based on this, Duncan stated that the Spot Ethereum ETFs provide these asset managers another “massive opportunity” to launch a product that could bring them similar success to the Spot Bitcoin ETFs, generating hundreds of millions in fees. Duncan remarked that the Spot Ethereum ETFs are “almost as big as the Bitcoin ETF given the base management fees and the future ability to clip a fee off the staking yield.”

Duncan further alluded to an interview Scott Melker (aka Wolf Of All Streets) had with VanEck’s Head of Digital Asset Research, Matthew Sigel, to emphasize how these asset managers feel about the Spot Ethereum ETFs. From what was said during the interview, Duncan noted how VanEck is betting on the Spot Ethereum ETFs to spark a “reflexive rally” in ETH, which Sigel claimed could make them more money. 

Spot Ethereum ETF Issuers Could Provide A Narrative For ETH

Duncan tried to counter the argument made by crypto figures like Andrew Kang, who argued that Ethereum had no narrative and that the Spot Ethereum ETFs might not succeed because of that. Duncan stated that asset managers like BlackRock and VanEck can “literally start the narratives themselves.”

He added that this narrative could be about BlackRock’s Real World Assets (RWA) on-chain, VanEck’s new stablecoin, or the asset managers’ “open app store” thesis. Dunan said the market could witness a “massive ETH rally” when these narratives are mixed with some “good flows and ETH’s extremely reflexive characteristics.”

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The crypto trader admitted that this could take time but opined that it is naive to think that these asset managers won’t deploy significant resources to attract inflows to their Spot Ethereum ETFs. 

Crypto analyst and trader Tyler Durden shared a similar sentiment when he mentioned that Ethereum reaching $10,000 was the “most asymmetric bet” in crypto today. He claimed that Wall Street had put so much effort into ensuring that the Spot Ethereum ETFs were approved, and now, they will make as much money from it while pumping ETH. 

Featured image created with Dall.E, chart from Tradingview.com

As per IntoTheBlock data, the profitability of the second-largest meme cryptocurrency, Shiba Inu (SHIB), has fallen to 35%. This comes as SHIB prices have steadily declined in recent months. At a present price of $0.00002155, SHIB remains down nearly 75% from all-time highs of $0.000088 attained in October 2021.

According to IntoTheBlock, IOMAP data regarding the composition of holders making money at the current price, 35% of Shiba Inu holders are profiting after a 75% decline from the all-time highs. A total of 61% of holders are out of the money while 3% are at the money.

The IOMAP, as indicated by IntoTheBlock, classifies addresses that are profiting (in the money), breaking even (at the money), or losing money (out of the money) on their positions. This blockchain data provides key areas where holders’ positions are concentrated, creating buying and selling activity.

Whales seem undeterred

According to WhaleStats’ analysis of the top 100 ETH whales, Shiba Inu is presently the second largest investment of these top holders after the second most popular coin, Ethereum.

Simply defined, a whale is someone who owns a lot of cryptocurrencies or is otherwise a large holder. The overall amount of SHIB owned by these investors at press time is worth a whopping $1,300,506,462, which is 14.21% of their cumulative portfolio. Their SHIB balance is currently 57,542,125,086,319 tokens.

Topping WhaleStats’ list of Ethereum whales is a wallet called “Light.” The owner of this crypto address holds, at the moment, a total of $4,317,094,010 worth of ERC-20 tokens. This large holder holds 35 trillion Shiba Inu tokens, or $773,054,910 worth.

As previously reported by U.Today, a large Ethereum whale purchased 49.65 billion Shiba Inu. Additional data from Etherscan shows that this ETH token investor bought a similar amount of SHIB more than two weeks ago. This investor now holds 4.4 trillion SHIB, as reported.

• Dogecoin’s latest spin-off, DOG, represents fractional ownership of Shiba-Inu-faced non-fungible token.
• Cryptocurrency analyst states that institutional short-sellers of Dogecoin are pulling back and holds bullish outlook.
• Shiba Inu-themed cryptocurrencies on layer-2 scaling solutions Arbitrum, ASHIB and ArbiFloki compete with SHIB and DOGE.
• An important update on DOGE nodes fuels Dogecoin’s current price rally.

A collective of DeFi’s early adopters and collectors offer millions of fractions of the Shiba-Inu-themed NFT at $1 each. Several copycat meme coins compete with DOGE and SHIB for market share.

Analysts see further upside in Dogecoin and Shiba Inu as price rally continues

A Dogecoin analyst on crypto Twitter behind the handle @TDogeWhisperer shared an update on the DOGE network. It states that currently, 205 computers are running DOGE’s newest update and calls more nodes to upgrade to 1.14.4 to secure the network and lower the transaction fees. 

DOGE is popularly used for making transactions, and a reduction in fees is set to increase the meme coin’s adoption by businesses. 

Analysts have noted an increase in the number of DOGE and SHIB copycat cryptocurrencies. Interestingly, DOGE’s newest rival, DOG, is a fractionalized non-fungible token collectively owned by PleasrDAO. 

Decentralized finance’s adopters and collectors have teamed up to form PleasrDAO, and this collective paid $4 million for the NFT that is set to be auctioned. The NFT bears a 2010 image of the original Shiba Inu named “Kabosu.”

Jamis Johnson, chief pleasing officer of PleasrDAO, states,

Doge is unquestionably the king of all memes, and PleasrDAO could not be more excited to invite anyone in the world to own a piece of something so integral to the cultural history of the internet.

The planned batch auction sale will take place on a decentralized finance protocol, Miso. SushiSwap, a leading DEX, will list the token for trade alongside DOGE after the token sale. 

An Ethereum layer-2 scaling solution, Arbitrum hosts two Shiba-inu themed copycat projects, ArbiFloki and ASHIB. As these cryptocurrencies gain traction, the competition further intensifies.

A pseudonymous NFT collector and crypto investor, @LilMoonLambo, states that Arbitrum is high risk and notes that he bought two tokens – ASHIB (SHIB fork) and ArbiFloki (FLOKI fork).

Interestingly, Shiba-Inu-themed coins have witnessed a rise in demand with increasing social media mentions over the past two weeks. As Dogecoin crossed the 30-cent resistance, top crypto Twitter analysts Kaleo, The Crypto Dog and Pentoshi expect further upside to the meme coin. 

FXStreet analysts evaluate Dogecoin as it approaches stiff resistance on its way to the next target at $0.40.