Ethereum ETH/USD trading volume nearly doubled within two days as evolving fundamentals attracted a new wave of investments.
What Happened: According to CoinMarketCap data, Ethereum's trading volume increased from $18.1 billion on Aug 4 to over $26 billion today — an increase of nearly 77%.
Glassnode data shows that Ether futures trading volume saw a very similar increase.
On Aug 3 Ether futures reported a trading volume of $29.5 billion to $50.2 billion on Aug 5 — the day of the London network upgrade — a 70% increase within two days.
This uptake in volume also coincided with a major price uptick.
Ethereum saw its price increase by 12.74% from its Aug 4 value of $2,465 to its current price of $2,883.
This year Ethereum has been rallying so much that it left Bitcoin BTC/USD in the dust, where Ether grew by 278% since Jan 1, Bitcoin returned 237% less.
Such an uptick in investor interest right at the time of the London hard fork is very well motivated.
This network upgrade included the Ethereum Improvement Proposal (EIP) 1559, which will cause thousands of Ether to be burned every day starting from yesterday. In fact, over 4,550 ETH, equivalent to over $12.1 million, were burned in under 23 hours after the update was implemented.
Pantera Capital CEO Dan Morehead recently said that the change is significant and that it will lead to “people who want to store wealth, doing it in (Ether) rather than just Bitcoin.”
This is based on approximate estimates, according to which Ether may soon even become deflationary after new coin issuance becomes lower than the con burn.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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