The weekend saw ETH go absolutely crazy, breaking through 3800 from 3400, returning to the high point of last December. From the perspective of trading volume, Ethereum is very likely to surpass the previous cycle high of 4100 and even surge all the way to the historical high of 4868. Over the weekend, Ethereum's trading volume even surpassed that of Bitcoin, indicating that this wave of ETH's rise is not only supported by off-exchange funds but also by an increase in on-exchange leverage.

I observed that over the weekend, the TVL of major DeFi protocols on data websites increased significantly, clearly indicating that on-exchange leverage has also been stimulated, which is good news for the entire altcoin market. The strength of this wave of Ethereum is due to the long suppression of purchasing power in this cycle, along with the immense demand for a rebound. The most important reason is that the staking ETF is about to be approved. Over the weekend, I saw a news item stating that the biggest issue the SEC faces with the ETF staking amendment is whether to approve all at once or to handle them individually. The implication of this news is very clear: the staking ETF is about to be approved, and the SEC is troubled because BlackRock is the last institution to submit the application, while other institutions have submitted theirs several months ago. Many institutions are already complaining, stating that the content of everyone's applications is quite similar and should be approved in the order of submission, rather than approving uniformly to please BlackRock. However, previously both Bitcoin and Ethereum ETFs were approved uniformly, and Bloomberg's expectations are the same this time.

Regardless of how the ETF staking is approved, its stimulating effect on the market is significant. In reality, external funds have already entered the market. Last week, large amounts of ETH were no longer available for over-the-counter (OTC) transactions, as many institutions are surely scrambling to position themselves before the staking ETF is approved, which is drawing funds into the market. It’s possible that while securing enough assets in the market, they realize that holding crypto is quite safe, and there is sufficient infrastructure available for staking ETH, which is also quite safe. This might lead institutions that initially only intended to buy up assets to exchange for ETFs to find that the necessity for ETFs is not strong, leading them to leave their money in the market. This is also why Bitcoin has hit new highs several times while the altcoin market remains stagnant; as long as Ethereum surges, the altcoins will undoubtedly follow suit.