After experiencing a fantastic rally over the past few weeks, Bitcoin has cooled down, posting modest gains of 0.21% to trade at $51,692 as of this writing. Massive capital has entered the crypto market since the US Securities and Exchange Commission approved spot Bitcoin ETFs on January 10th, but the inflows have slowed down.
Despite this week’s slow performance, Bitcoin is up over $8,000 this year, considering it was trading at $42,219 on January 1st.
Meanwhile, Ethereum, the closest rival of Bitcoin, has had an exceptional week. The token has finally crossed $3,000, a price it last saw in April 2022. ETH has rallied 8.9% over the past seven days to trade at $3,037. But what’s causing the second-largest cryptocurrency by market cap to surge?
Why is Ethereum Rallying?
Well, the renewed investor interest in Ethereum is primarily driven by top Wall Street firms applying for spot Ethereum ETFs. Earlier this week, Franklin Templeton, an asset manager with over $1.4 trillion in AUM (Assets under Management), announced that it had filed for an Ethereum ETF with the US Securities and Exchange Commission (SEC) to expose traditional investors to ETH without them holding the token.
Other asset management companies that have applied for this type of ETF include VanEck, BlackRock, and Grayscale. The SEC will deny or approve a spot Ethereum ETF in May this year.
Meanwhile, BNB is another top-ten cryptocurrency with an impressive performance this week. It is valued at $384 following a 9.1% surge.
Uniswap has also done well. The 16th largest digital currency by market cap is up 65% to $12.27. UNI rose sharply on Friday when news broke that the Uniswap decentralized exchange intends to overhaul its governance system in order to reward users staking their UNI tokens.
AI Tokens Become This Week’s Top Performers
By far, AI tokens have been the biggest performers this week. These tokens started to rally when Nvidia released its earnings report on Wednesday, showing that the AI-focused company generated $22 billion in revenue during last year’s fourth quarter, beating the analysts’ estimates. SingularityNET is up 64% to $0.7517, while Worldcoin has surged 59.7% to $8.75.
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