The total market capitalization of cryptocurrencies surged by hundreds of billions in a matter of hours, as was previously reported on May 21. Increased demand for Bitcoin (BTC) preceded this quick surge, with over $950 million being pulled out of 11 U.S. spot BTC ETFs.

The acceptance of spot Ethereum (ETH) ETFs, which surprisingly improved market sentiment, was a major contributing element, according to the Nansen analyst.

The expert said, "The ETH ETF approval was completely priced out and surprised markets positively."

Updated 19b-4 filings by a number of issuers include proposed regulatory amendments. Additionally, reports suggest that after first approvals, the US SEC engaged providers on securities registration statements through S-1s. Even with this advancement, the procedure can go slowly.

Apart from Wall Street's embrace of cryptocurrencies and on-chain performance, the analyst emphasized better macroeconomic conditions. The Federal Reserve took action to control inflation, according to reports, and short-term U.S. rates fell by 40 basis points in just 30 days.

Additionally, at some point between May 18 and May 19, Nansen's risk management indicators changed to "risk-on," indicating the arrival of greater token levels. The expert stated, "At this point, it appears that we are riding an upward leg in cryptocurrency prices."

Market values had leveled down at the time of writing, following a two-day surge that saw ETH surpass $3,700 and BTC above $70,000. According to CoinGecko, trade volumes had halved from the day before, and the whole value of the cryptocurrency market was estimated to be approximately $2.7 trillion.