The data shows that the network activity has increased, and the price of Ethereum (ETH) will return to 2K dollars
Ether (ETH) price is trading slightly higher on November 23rd and has maintained support above the $2,000 level after briefly testing $1,930 on November 21st. The price of Ether rose by 2.5% last week, while the total market capitalization grew. 0.5% This improvement can be attributed to improved decentralized applications (DApps) metrics, increased protocol fees, and Ethereum's dominant non-token (NFT) market.
To assess whether Ether can maintain its $2,000 price point, one must consider the effects of Binance's recent regulatory challenges following its plea agreement with the US Department of Justice (DOJ).
As the conditions of the Ethereum network improve, the fear of investors will decrease
Binance leads in Ether spot trading volume, with ETH futures contracts accounting for 30% of open interest. The closing of Binance's $2.35 billion worth of ETH derivatives contracts in the short term could have significant consequences. Although initial analyzes show little change in circulation and liquidity, Binance saw a net outflow of $1.53 billion between November 21 and November 23, as reported by Defillama.
The regulatory landscape presents risks and opportunities. Some see Binance's actions as evidence of insufficient reserves, while others are concerned about the $4.3 billion fine imposed on Binance and its former CEO, Changpeng “CZ” Zhao. In particular, Bitcoin advocate Luke Broyles advised his followers to withdraw their coins from exchanges.
Anyone who claims to know that any snowflake will cause rain is naive.
However… #Binance $4.3 BILLION fine is really just a big snowflake on a big iceberg.
Act accordingly. Self preservation now. #Bitcoin
— Luke Broyles (@luke_broyles) November 23, 2023
Even if Binance continues operations and protects all client assets, the long-term effects of full compliance and increased scrutiny are uncertain. Additionally, the relationship between Binance and stablecoin issuers such as Tether (USDT), TrueUSD (TUSD) and Binance USD (BUSD) raises further questions.
It raises the possibility that government agencies will increase regulatory measures against stablecoin providers by finding previously undisclosed money transfers and terrorist financing activities through Binance, including through fiat payment gateways and banking partners. This news is bad for Ethereum as Binance is the third largest shareholder of ETH with $1.24 billion in deposits according to Defilama.
However, recent regulatory developments offer some positives as well. Binance's move to full compliance reduces the risk associated with unregulated exchanges, making it more likely for the US Securities and Exchange Commission (SEC) to approve spot exchange-traded fund (ETF) instruments for cryptocurrencies. Leading industry mutual fund managers such as BlackRock and Fidelity have recently shown interest in launching ETFs based on Etherspot.
Additionally, the SEC's November 20 filing lists 16 cryptocurrencies as collateral against Kraken, not including Ether (ETH). This omission reduces the likelihood of regulatory action against the Ethereum Foundation and entities involved in the 2015 ICO, providing a silver lining amid regulatory uncertainty.
Ethereum network health and NFT markets are on the rise.
Assessing the health of the Ethereum network, Ethereum Daps reached $26 billion in locked value (TVL) on November 23, representing a 5% increase from the previous week, Dapradar reported. However, a hack had a significant impact on DYdX, resulting in a 16% drop in the protocol's deposits.
Ether's market capitalization of $248 billion trails behind Bitcoin's $728 billion, with the two networks generating similar protocol revenues. Over the past seven days, the Bitcoin network has collected $57.5 million in payouts, compared to Ethereum's $54.3 million. These figures do not include ecosystem fees from platforms such as Lido, Uniswap or Maker protocols.
Ethereum regained its leadership position in NFT sales, recording $12.6 million in transactions in 24 hours. Despite Bitcoin's brief lead in NFT activity, Ethereum remains the blockchain of choice for popular NFT projects.
In the year The positive performance from Ethereum on November 23 can be attributed to improved on-chain parameters, growing expectations of spot ETF approvals, and reduced regulatory concerns from the 2015 ICO.
This article is not intended for general information purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.
