In the Last Month, People Are More Interested In Trading Ethereum Than Bitcoin
The same trend holds for OI as investors and traders are more interested in Ether ahead of its London upgrade. Also, there is confidence about the shift to PoS being on track with just “non-trivial issues” to be figured out.
Ether price is now aiming for $3k as it trades around $2,850, marking a spectacular recovery, up 25% from Sunday low of $1,725.
This strong recovery is the result of people being more interested in trading Ether than Bitcoin. ETH is actually the 2nd most traded crypto-asset right now at $55.9 billion in the past 24 hours, after Tether’s nearly $132 billion, as per CoinGecko.
Bitcoin comes behind Ether at $47.4 billion, which started happening last month.
Polygon, Ethereum Classic, XRP, BUSD, and Cardano are also recording huge volumes between $6 to $10 bln.
The same trend can be seen in the open interest in the futures market as since the Sunday low, while Ethereum’s OI increased by $1.25 billion, Bitcoin added $1.03 billion to its OI, as per Bybt.
This suggests what started before the correction, with investors and traders getting more interested in Ether sending its prices to an ATH of $4,385 in a very short period of time while Bitcoin consolidated.
Ether is gaining traction ahead of its London hard fork, which involves EIP 1559, considered a big catalyst for Ether prices as by burning the gas fees paid in ETH, it will effectively make the crypto asset “deflationary.”
Not to mention, 9.6 million ETH are locked up in DeFi, though they are on a downtrend since mid-April, nearly 5 million ETH are in ETH 2.0 deposit contract, which is on an uptrend, and another 3.16 million ETH are locked in Grayscale.
When it comes to the network development side of things, developer Danny Ryan who works with Ethereum Foundation, shared on Tuesday that Altair, the first planned upgrade of the Beacon Chain, is making steady progress.
Meanwhile, the Rayonism hackathon, which allowed teams to rapidly prototype core Merge designs and better understand how this merged system will work in practice, has been wrapped up. Client teams are now focused on London and Altair hard fork and researchers on Merge spec refinements and testing, he said. The update reads,
“After the summer upgrades, teams will shift their focus to the Merge and begin tackling the production engineering with an eye toward public testnets.”
In the current environment where proof-of-work (PoW) is getting bashed for its energy usage, Ethereum’s shift to proof-of-stake (PoS) works in its favor.
“It’s amazing,” said Ethereum co-founder Vitalk Buterin in an interview. “I’m definitely very happy that one of the biggest problems of blockchain will go away when proof of stake is complete.”
While many continues to be skeptical about the shift, for which Buterin has been advocating from the beginning, to be done by the end of this year or next year as expected by community members, Tim Beiko, who coordinates the developer work on the new network for the Ethereum Foundation, is “confident.” He said,
“There’s a bunch of non-trivial issues to figure out, but the fundamental architecture is set and pretty promising.”