- Avalanche and Aptos will be next in line for ETF approval
- Both tokens saw their prices drop significantly in recent days.
The approval of ETFs and the anticipation surrounding the verdict have helped the prices of both BTC and ETH. However, there is a chance that the sudden price increases will not be limited to the top-tier coins.
In fact, avalanche [AVAX] and Aptos [APT] They have now been cited as cryptocurrencies that could join the club, if companies decide to register them.
Will Avalanche and Aptos be next?
According to data shared by GSR, Avalanche and Aptos have a higher chance of having their ETFs approved, provided Solana’s ETF application gets approved.
The GSR study revealed that regulatory bodies like the SEC are showing signs of openness toward cryptocurrency spot ETFs that meet specific criteria. This is a significant change, compared to what has occurred in recent years.
Decentralization and potential investor demand are seen as key factors. A higher level of decentralization, that is, a network not controlled by a single entity, is likely to be viewed favorably for ETF approval. Metrics such as the Nakamoto coefficient, participation requirements, and CCData governance score can help evaluate this.
Among other cryptocurrencies, Avalanche and Aptos have a good chance of gaining ETF approval due to their relatively decentralized structures according to GSR.
Even with a high decentralization score, an ETF is unlikely to be created if there is not enough investor interest. Therefore, issuers will weigh both factors when deciding which cryptocurrencies to use to create an ETF.
Approval of the ETFs would make Avalanche and Aptos more accessible to traditional investors who might be hesitant to buy cryptocurrencies directly on exchanges. This could significantly increase your user base and adoption.
However, at the time of writing, things were looking bleak for both protocols. Daily activity in both protocols and transactions decreased materially in recent days. Furthermore, the TVL (total value locked) fell across the board, implying that the performance of the protocols was not positive in the DeFi sector.
Source: Artemis
How are the tokens doing?
The price movements of both tokens have seen a significant decline in recent months, showing signs of a bearish trend.
However, while the weighted sentiment around APTOS has dropped significantly over the past few days, the sentiment around AVAX has increased.
Realistic or not, here is AVAX Market Cap in terms of BTC
Source: Santiment
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