The cryptocurrency market remains prone to extreme bearishness after the SEC sued Binance and Coinbase for illegal operation and sale of unregistered securities, while also labelling a select number of major coins are securities.
Despite Ethereum not being explicitly named in the lawsuit, it has received an enormous brunt of the negative outlook. The token has fallen over 6% in the past week as pre-FOMC fears also make matters worse.
As ETH and other major tokens struggle, Investors are already flocking to new tokens not targeted by the SEC that can offer better immediate prospects. Let’s take a look at Ethereum’s chances of recovering from the crash and which new tokens traders are backing to defy the bear market.
Ethereum Price Prediction Remains Bearish for June
The security versus commodity debate has now become the overarching narrative of the crypto market. In its lawsuit, the SEC labelled several major altcoins such as Cardano, Solana and MATIC as unregistered securities. These tokens plummeted by as much as 30% following the filing.
On the surface, the SEC’s lawsuit could have been beneficial for Ethereum. Both the Solana and Cardano communities have not shied away from calling themselves “Ethereum Killers”, and both blockchains are designed to replace Ethereum as the leading platform for smart contract technology. Thus, a bearish outlook for ADA and SOL could have been bullish for Ether.
As it turns out, Ethereum may soon find itself on the SEC’s target as well. SEC chairman Gary Gensler has said multiple times that Bitcoin is the only cryptocurrency that he is comfortable deeming a commodity. In a tense exchange with Representative Patrick McHenry during his congressional hearing, Gensler hesitated in clarifying whether ETH is a security or not.
Several other key figures have taken a strong stance against Ether as well. New York Attorney General Letitia James sued KuCoin for offering the sale of ETH, which she labelled as an unregistered security.
The token may soon face a double whammy as the Federal Reserve is set to decide on a major interest rate hike next week. Several key officials including Fed chair Jerome Powell have taken an uncompromising stance in their fight against soaring inflation levels. If the Fed indeed proceeds with another interest rate hike, ETH prices could take another major hit.
A recent report by CoinShares highlighted that Ethereum-based assets saw outflows totalling $36 million in just the last week. The report believes that most of the outflows are a result of the Fed’s unending hawkish monetary policy.
The Ethereum blockchain also needs significant improvements to ensure long-term user retention. In his blog, Ethereum founder Vitalik Buterin explained that the blockchain will simply die without three key transitions of scalability, privacy and wallet security. Buterin’s biggest fear is that with ETH transactions costing a lot of fees, users will simply move to other options like Solana and Cardano. While these blockchains are more centralised than Ethereum, they are also significantly faster.
TradingView, a technical analysis platform, gives a sell signal to the token in the daily time frame. With ETH underperforming 12 of the 15 most important moving average indicators, its price prediction remains bearish for June.
Which Tokens are Outperforming the Beark Market?
Despite the struggles of major tokens several new tokens are providing hope to traders.
Two of these include Wall Street Memes and Ecoterra, both of which are sailing through their respective presales.
Wall Street Memes Token Raises $6.5 Million in Bid to Be the Next Big Meme Coin
The Wall Street Memes token has become one of the hottest commodities in the meme coin market. Investors are losing confidence in tokens such as Pepe and Doge due to their inability to perform in the bear market. But the $WSM token has become one of the most consistent performers as it has raised over $6.5 million in less than 3 weeks.
The token is a result of the same community spirit that inspired the historic GameStop short squeeze in 2021. In fact, the Wall Street Memes group considers it its mission to disrupt the traditional financial landscape. The group also has a strong track record in the crypto space as well. It sold out its Wall St Bulls NFT collection in 32 minutes, netting a cool $2.5 million. It has also recently announced its own Bitcoin ordinal NFTs.
The group is not resting on its laurels as the Wall Street Memes token has adopted community-driven tokenomics. The entire $WSM supply is available to the general public, with no cuts for any private sales. 50% of the tokens are available during the presale itself, allowing ample opportunities for investors to take advantage of the early presale prices.
30% of the token supply is reserved for cool community awards, to be used to further enhance user adoption. 5 lucky degens will earn $10K worth of $WSM tokens through a generous airdrop.
A global brand value and a million-strong internet army mean that the $WSM tokens are quickly selling out. Investors have limited opportunity to purchase the token through bank cards or by swapping ETH or USDT tokens.
New Green Crypto Project Ecoterra Raises $5 Million in Fight Against Climate Change
As the concerns of global warming and climate change rise, investors are now clamouring for eco-friendly investment opportunities in the crypto space. The newly launched Ecoterra project is dominating this demand as it recently reached the $5 million milestone in presale.
The project has come up with an innovative implementation of blockchain technology and tokenomics to tackle the anthropogenic climate crisis. It incentivizes individuals and corporations to play their roles in reversing the harmful effects of global warming.
For example, companies spend millions of dollars to build an eco-friendly reputation. With Ecoterra, companies can simply purchase recycled products at a cheap cost and earn social credit. Similarly, individuals can earn $ECOTERRA tokens by recycling waste products or by paying their green energy bills through the platform.
The project has partnered with leading climate action organisation Verra to offer cost-effective carbon offset solutions. Users can reduce their carbon footprint by purchasing these offsets from Ecoterra’s carbon offsets marketplace.
Given the token’s strong presale and its crucial role in changing the mainstream perception of the crypto industry, it is a likely candidate for several Tier-1 exchange listings including Binance.
Interested investors can become a part of this green movement by purchasing Ecterra tokens either through bank cards or by swapping ETH or USDT tokens.