Ethereum News Today: Ethereum Soars 11% as Fed Rate Cut Speculation Fuels Crypto Rally

Ethereum, Solana, and Dogecoin led a broad cryptocurrency rally on Friday, fueled by remarks from U.S. Federal Reserve Chair Jerome Powell at the Jackson Hole summit. Powell indicated that the central bank is considering rate cuts as soon as next month, citing a shift in risk balance and a data-driven approach to monetary policy [1]. The comments came amid growing pressure from President Donald Trump, who has advocated for lower rates in light of economic uncertainty. In response, Ethereum surged over 11%, Solana and Dogecoin gained approximately 8%, and Bitcoin rose 3.5% to $116,000. XRP and BNB also saw gains of about 5% [1].

The market movement was accompanied by unusual activity from a long-dormant Bitcoin whale. A wallet inactive for seven years has begun transferring a significant portion of its BTC holdings into Ethereum. According to blockchain analytics firm Lookonchain, the wallet has acquired 62,914 ETH ($270 million) and opened a large derivatives position of 135,265 ETH ($580 million). The wallet is part of a cluster of six addresses holding over 83,585 BTC, valued at roughly $9.45 billion [1]. The shift coincided with Bitcoin dipping to a two-week low of $112,000 and Ethereum approaching its 2021 all-time high.

Ethereum-focused treasury firm SharpLink Gaming (SBET) saw its shares surge over 10% after announcing a $1.5 billion stock buyback. The program aims to capitalize on periods when the company's stock trades at or below its net asset value (NAV). SharpLink’s co-CEO, Joseph Chalom, explained that issuing new equity at a discount to NAV could dilute the firm’s ether-per-share ratio. The company currently holds 740,760 ETH, valued at around $3.4 billion, and is trading at approximately 1.06× NAV [1].

Institutional interest in crypto continued with VanEck’s filing to launch a JitoSOL ETF, the first spot Solana fund fully backed by the liquid staking token JitoSOL. The Jito Foundation described the product as a first of its kind. The filing follows recent SEC guidance that clarified certain staking activities do not constitute securities transactions. It also builds on the recent approval of in-kind redemption and creation mechanisms for crypto ETFs under the Trump administration [1].

On the trading front, a pseudonymous trader known as “Naseem” was identified as the first buyer of Kanye West’s YZY token on Solana. Naseem spent $250,000 in USDC to acquire nearly $1.2 million worth of YZY, despite the project’s anti-sniping measures. The trader is known for turning $1 million into $100 million via the TRUMP memecoin earlier this year. Naseem quickly offloaded over $535,000 in YZY tokens and cycled liquidity through a Meteora pool, exiting with about $1.02 million in USDC [1].

These developments reflect a mix of macroeconomic signals, whale activity, institutional product development, and high-stakes trading strategies. The U.S. will continue to release key economic data in the coming week, including personal consumption expenditures and GDP figures, which could further influence market sentiment [1].

Source: [1] The Daily: Ether, Solana, Dogecoin lead crypto rally, Bitcoin whale rotates into ETH, VanEck files JitoSOL ETF, and more (https://www.theblock.co/post/368010/ether-solana-dogecoin-lead-crypto-rally-bitcoin-whale-rotates-into-eth-vaneck-files-jitosol-etf-and-more)