Ethereum Rises, Japan Classifies ETH, BTC as Regulated Financial Products
Ethereum (ETH) price rose slightly in the cryptocurrency market on Thursday, following a surge in the US inflation rate to 4.2% in May and renewed tensions between Washington and Tehran.
ETH trading volume is down about 10% to $12 billion, as buying appetite remains constrained by geopolitical uncertainty and the U.S. Federal Reserve’s rate outlook.
Crypto traders remain optimistic about Ethereum’s price recovery, saying the significant sell-off pressure that plunged the altcoin market below $2k was not coin-specific.
In the last 1 hour, the altcoin price has shown signs of a price uptick as Japan classifies Ethereum and Bitcoin as regulated financial products.
Today, Japan’s House of Representatives passed a bill reclassifying cryptocurrencies like Ethereum as regulated financial products, aligning them with traditional securities.
The law, effective in 2028, slashes the maximum tax on crypto profits from 55% to a flat 20%. It also enables the Japan Exchange Group to pursue listings for spot Ethereum ETFs, opening a new channel for institutional investment.
This is bullish for Ethereum because it provides regulatory clarity and significantly reduces the tax burden for Japanese investors, potentially increasing long-term holding and institutional adoption.
On-chain data show that the number of Ethereum addresses has surged to approximately 195 million, more than triple Bitcoin’s 59 million.
This growth is attributed to Ethereum’s dominant role in DeFi, staking, and broader on-chain activity, indicating expanding user adoption even during periods of market fear.
This is a strong fundamental indicator for Ethereum, signalling robust network effects and a growing base of active participants. A rising address count suggests deepening ecosystem engagement, which supports the network’s value proposition as a foundational layer for decentralised applications.
Ethereum’s trajectory is being shaped by favourable regulatory developments in key markets and unwavering growth in network adoption. ETHUSD- Ethereum Price Tumbles by 10% on Panic Selling
