New Delhi (CoinChapter.com) — Ethereum (ETH) is a crypto that seems hard to put down. Last week’s market crash saw its prices go down by almost 57%. However, the number two cryptocurrency by market cap has been on the rise since May 23. Several factors fueled this rally, and experts speculated the ETH/USD rate to reach $3,000 soon.
An indicator favoring the upside speculation is the Ethereum balance across all the crypto exchanges. Any coin’s reserves inside exchanges’ vaults are a gauge of investor sentiment. If investors think that a coin will rally to a higher price, he/she prefers to HODL the token in his/her private wallets.
As a result, cryptocurrency balances on exchanges decrease. Similarly, if the investors believe that fall in prices is imminent, they deposit the concerned token back into exchanges to either sell or trade them for other assets.
Ethereum prices are seeing a strong rally, maintaining a daily high above $2,500 over the past few days. Though Bitcoin is recovering too, its progress is not at par with Ethereum’s.
Ethereum reserves on exchanges vs price. Source: Cryptoquant.com
Ethereum reserve vs. price chart forecasts hodling sentiments. As of May 26, only 20.399 million Ethereum was in exchanges. In fact, ETH exchange inflow has seen a steady decline since May 23. Incidentally, the same day the coin started recovering.
Bitcoin reserve on exchange vs price. Source: Cryptoquant.com
In comparison, Bitcoin’s reserve vs. price chart shows a dumping pattern. BTC’s balance in exchanges has increased consistently over the past few weeks. Exchange NetFlow is fluctuating, but the rising balance indicates a selling pattern in investors’ minds.
These trends have sparked positive speculations from investors and analysts alike. Given that bitcoin’s recovery has been choppy at best, ETH is gaining favor with investors.
I hate it to say, but $ETH seems more attractive than $BTC. $ETH Balance on exchanges are back on pre-dump levels. Combined with the break of the daily price levels (2775$), it is stronger than $BTC which hasn't recovered inflow levels & is at daily resistance@cryptoquant_compic.twitter.com/MxzMrRb9yR
Cryptoquant’s Twitter handles reposted this tweet, which lines up with the market viewpoints of the past few days. Altcoins, including ETH, have been recovering better than Bitcoin. The reason behind the slower recovery of BTC is the crash it caused post its own decline.
Stablecoin Supplies Going Up as BTC Prices Fall
Stablecoins are new entrants to the cryptocurrency game. Their value is dependent on assets outside the crypto umbrella, like Gold or US Dollar. Stablecoins aim to provide stability to an otherwise volatile crypto market.
As #Bitcoin price falls, the supply of the big three stablecoins $USDT, $USDC and $DAI have continued up and to the right.
During this sell-off, stablecoins have grown by:$USDT up $14.2B$USDC up $9.72B$DAI up $1.22B
Stablecoins reserves across exchanges have increased.
Glassnode, a blockchain data, and intelligence provider, pointed out this trend on Twitter. Stablecoins can be used to buy other cryptocurrencies. An increase in exchange balance suggests a greater prospect of investors trading these coins.
There is a strong chance these coins will be used to buy ETH, BTC, or other altcoins. If this happens, it will further fuel the bullish rally that Ethereum is experiencing.
Also, bitcoin is bound to benefit from this as well, being the flagship of the crypto bandwagon. Who knows, maybe stablecoins will live up to their name and bring back the “stable” growth that cryptocurrencies were enjoying before the fall
A Delhi-based Markets writer, I did my bachelor's in engineering with major in electronics and communications. I first heard of bitcoin while writing an article about blockchain technology a few years back, and have been following it ever since. Bitcoin may well be current big thing happening in the finance industry, and it feels like the right time to join the crypto bandwagon.
3AC acquired Ethereum (ETH) when it was trading near $2800. ETH rallies by 16%, outperforms BTC. LAGOS (CoinChapter.com) —...
Our Partners
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.