It has been just revealed the fact that there is a new CME Group report that shows the fact that the tech stock price surges are boosting the explosion for ETH. Check out the latest reports below.
New reports reveals optimistic moves for ETH
A recent report by CME Group analyzes the factors driving the movement of Ethereum (ETH) and identifies tech stocks, the US dollar, and Bitcoin (BTC) supply as key drivers.
The report highlights that when the prices of technology stocks rise, Ethereum tends to gain more than Bitcoin. This is because the rally benefits Ethereum more than Bitcoin, and as a result, the ETH/BTC exchange rate tends to rise.
Since May 2022, there has been a consistent one-year rolling correlation of around +0.2 to +0.3 between ETHBTC and the Nasdaq 100, which is heavily focused on technology.
A similar correlation can be observed with the S&P 500 Technology Select Sector futures. This suggests a moderate, yet persistent, positive correlation between the movements of technology stocks and the movements of ETH relative to BTC.
However, a stronger US dollar has the opposite effect. When the greenback becomes more expensive in comparison to other currencies, it has a more negative impact on Ethereum than on Bitcoin, although the effect is not particularly strong.
On days when the Bloomberg Dollar Index (BBDXY) rises, which measures the USD against 10 major currencies, ETHBTC tends to decline.
Tokens built on Ethereum fate revealed
According to Hayes, tokens created by AI DAOs will likely be exchanged on decentralized exchanges (DEXs), especially ones built on the Ethereum platform.
DEXs are well-suited for enabling the trading of various types of tokens such as equity, debt, utility, participation, and others that are generated by AI-powered DAOs. As these DAOs collect funds and produce blockchain-based tokens, a diverse range of new DAO tokens will become accessible for trading on DEXs.
