Ether (ETH) is trading at its highest level since the Corona virus crashed in MarchHowever, data suggests that market capitalization has little interest in holding (or holding) the second largest cryptocurrency due to market capitalization.
Ascending According to the results of the Glassnode chain monitoring system on July 10, a dealer found that The balance of the ether exchanges remains high, while Bitcoin balances (BTC) have decreased significantly.
The balance between BTC and ETH exchanges is different
According to the non-verified data, Since March, ETH’s stock market balance has generally continued with an upward trend. At the same time, BTC has been leaving the mass exchanges for three months.
“Since the fall of Black Thursday, the balance of bitcoin on cryptocurrency exchanges has dropped fairly quickly. On the other hand, the balance on the Ethereum exchanges is still relatively stable, “summarized the trader.
The phenomenon could have several effects. Coins on exchanges are more vulnerable but trade faster, which suggests The owners store them there for short-term sale.
As Cointelegraph previously reported, In the past few months, BTC traders have preferred to save rather than sell or trade..
The current DeFi trend can also influence investors on Ethereum, the network for which Ether is the native token. The decentralized financial sector has triggered a token boom and the associated trade. Since ERC-20 tokens are on Ethereum, ETH is required for transactions.
ETH would be a suitable “home” for DeFi retailers, given the recent low volatility leading up to his fifth birthday.
Comparison of the balance between BTC and ETH exchanges. Credit: Samneet Chepal / Twitter
The ETH / BTC correlation has increased in the short term
For its part, the ETH / BTC correlation has increased briefly during A longer trend has meant that ETH as a percentage of the BTC price has remained fairly constant, as can be seen from the skew data.
The ETH / BTC correlation diagram was created for the previous year. Source: Skew
Meanwhile, There is still talk of a new “old season”, a period of growth and profitability of altcoins.
Among those who predict a new alternative gold rush is Peter Brandt, the confident trader who posted ETH gains on BTC this week.
“Most altcoins should beat #bitcoin in the near future,” he said.
Important old coins still remain at a fraction of their all-time high of more than two years ago. The ETH was once trading at almost $ 1,400, but since then has been unable to regain more than 20% of these levels.
BTCon the other hand currently it is around 50% of its all-time highs.