Potential for Ethereum (ETH): Five reasons why it could be an exciting investment in July 2023

Potential for Ethereum (ETH): Five reasons why it could be an exciting investment in July 2023

Ethereum (ETH) could be an interesting investment in July 2023 for various reasons. The recent Ripple ruling caused a stir in the crypto industry. The fact that XRP is not a security according to the US judiciary also suggests that Ethereum, as a decentralized asset, is not considered a security either. Other proof-of-stake (PoS) cryptocurrencies such as Polygon, Solana and Cardano were also winners following the ruling. This means that Ethereum price development is no longer limited by the fear of being classified as a security by the SEC.

Additionally, the Ripple ruling could be a first step toward regulation as other players like Coinbase are confident that the SEC's lawsuits will not stand. This could lead to increased calls for crypto-friendly regulation. The SEC may have acted counterproductively when it comes to the crypto industry.

The possible launch of a Bitcoin Spot ETF by major asset managers such as Fidelity and BlackRock signals growing institutional acceptance of cryptocurrencies. This also applies to Ethereum, which is popular with institutional investors. Institutional investors prefer regulated and traditional investment vehicles such as ETFs as they offer a simple and familiar way to invest in a specific asset. If Bitcoin receives a spot ETF, the chances that Ethereum will also attract more capital through such an ETF increase. An Ethereum Spot ETF would make it easier for institutional investors to access ETH and increase the liquidity of the Ethereum market. Ethereum 2.0's improvements, particularly the introduction of the proof-of-stake consensus mechanism, make ETH more attractive to institutional investors as it leads to improved scalability and energy efficiency. Institutional acceptance of Ethereum would increase trust in the platform and result in increased buying pressure.

An increasing popularity of staking on Ethereum could reduce the freely tradable supply and thus have a bullish effect on the price. Staking locks Ethereum tokens long-term to secure the network and validate transactions. This reduces the available supply of Ethereum. This can lead to a supply-demand imbalance, where increased buying pressure causes prices to rise faster. The number of Ether staked is even higher than the available supply on the crypto exchanges. The increasing staking ratio of currently 17.5% could make Ethereum even more attractive.

Ethereum deflation is also bullish for the price as it limits supply. If demand for Ethereum remains high or increases while supply becomes tighter, this will result in an increase in the value of the cryptocurrency. Since the merge, a total of almost 300,000 ETH has been removed from the holdings. A total of 546,000 Ether was distributed as a staking reward, while 839,000 ETH was removed during burning. This shortage of supply could encourage an increase in value.

Ethereum's chart image has improved in the wake of the positive XRP ruling. Despite falling 5% in the last 24 hours, Ethereum managed to trade higher and hit a new multi-month high at $2030. The recent setback did not have a significant impact on the chart picture. It would be beneficial if the bulls can pump the price above $2000 and head towards the $2075 level. In the short term, there is potential for the upward move to continue following a retest of $1935.

In addition to Ethereum, meme coins like Pepe have also become the focus of investors. The meme coin season could pick up speed again in the future and appeal to new fun currencies. However, when investing in meme coins, the risks of this particular market segment should be taken into account. The Wall Street Memes movement has already invested nearly $15 million in the new meme coin, which is inspired by the spirit of WallStreetBets and GameStop. There are over a million followers on social media who support Wall Street memes and are considered potential investors. Fair tokenomics ensures that 100% of all tokens go to the community in the medium term.

Overall, Ethereum offers many exciting investment opportunities in July 2023. The Ripple ruling, the possible introduction of a Bitcoin Spot ETF and the popularity of staking could have a positive impact on the price. Deflation and the improved chart image are other factors that speak in favor of Ethereum. However, investors should be aware of the risks of investing in cryptocurrencies and meme coins.