There’s a lot of activity on the Ethereum blockchain and its associated industries. According to reports, Ethereum futures trading volume has exceeded bitcoin for the first time in over a year. The Ethereum network has seen an increase in daily active addresses, with the cause of this surge unknown.
The switch occurred first on July 24, with the ETH trading volume at $29 billion and BTC volume at $23 billion. The increase in futures trade volume is attributed to the network’s upcoming merge with the mainnet, which has enthralled investors. These traders are hoping for significant improvements to the network.
Ethereum attains new heights ahead of the merge
Crypto markets increased in value over the previous 24 hours as the Federal Reserve (Fed) lifted interest rates by 75 basis points as anticipated. Following the Fed announcement, bitcoin rose 10%, while ethereum shot up as much as 16%.
The Bitcoin price is currently 23,111.04 USD, according to CoinMarketCap. It has a trading volume of 36,412,989,418 USD in the last 24 hours. Bitcoin has appreciated by 8.92% in the last 24 hours.
Ethereum’s price is now 1,638.25 USD. It has a trading volume of 25,798,852,769 USD n the last day. Ethereum has appreciated by 12.60% in the last 24 hours. The crypto market cap is $1.06T, up 8.08% over the last 24 hours.
After the FED rates report, Ethereum rose among the major coins by 6.4%, with Solana SOL, BNB, and Cardano‘s ADA increasing by 6.4% in the previous 24 hours. Elsewhere, Uniswap UNI and bitcoin cash climbed as much as 21 percent.
Over $200 million in shorts were liquidated on a strong upward momentum, and some $175 million in longs. Shorts accounted for 72% of all liquidators. This indicates that a short squeeze may have helped to drive the price appreciation among major cryptos throughout the day.
Shorts are bets on market drops, while longs indicate wagers on price increases. Ether futures have witnessed over $165 million in short and long positions liquidations combined. As of July 28, ETH futures trading volume was greater than bitcoin’s, with the former at $11 billion and the latter at $10 billion.
The fact that ethereum futures trading volume is now greater than bitcoin’s is a significant event for the asset. It’s common for bitcoin futures trading volume to be considerably higher than that of other assets. BTC remains by far the most widely used cryptocurrency.
However, the past year has been remarkable for ETH, even if the price does not reflect it. The asset has seen several upgrades and milestones, which have generated a lot of interest in the asset and ecosystem.
All things Ether, Vitalik, and the blockchain market situation
Given the fact that cryptocurrencies have grown in prominence, as well as their status as a commodity, it may reasonably be said that ethereum has had a greater impact on the market. In the previous two years, DeFi and NFTs have dominated the crypto space’s discourse; regulators are also particularly interested in these two categories.
According to Ethereum co-founder Vitalik Buterin, the cryptocurrency has a bright future. In any case, the network is seeking to make a bigger splash in the market.
According to Vitalik, the merger is not valued until it happens. This is not just for financial reasons but also for psychological and narrative ones. The much-anticipated Merge is expected to take place on September 19. However, the integration of Ethereum will not immediately lead to a permanent PoS switch.
In financial terms, the prices are not anticipated to rise soon before or after the merger. Expect a six-to-eight month wait before actual price movement emerges under the right circumstances. After the Merge, the Ethereum will be deflationary.
Cleanup forks usually last 6 to 8 months. Ethereum developers are likely to start accepting withdrawals following a post-cleanup upgrade. Only after the cleanup phase will new Ether issuance be allowed to continue. After the Merge, the Ethereum (ETH) will be a deflationary cryptocurrency, with the supply declining as a result of EIP-1559’s proposal to destroy ETH instead of distributing it.
The effects of the merge
The price of Ethereum may rise before the Merge, plummet on the Merge, and then rise again, as Vitalik Buterin predicted at the Ethereum Community Conference. Tim Beiko, an Ethereum developer, announced the details of the Goerli testnet transition on Twitter.
The Goerli testnet will combine with the Beacon Chain, dubbed Prater, at some point in the future to form the Goerli/Prater network. The ETH ecosystem has seen a significant increase in activity in recent days, and no one knows why.
The steep rise in active addresses on the network has sparked plenty of speculation. Santiment, an on-chain metrics firm, is still looking into why a sudden surge of Ether (ETH) active addresses surpassed the previous all-time high (ATH) by 48%.
On Wednesday, the firm reported that the number of daily active Ethereum addresses had suddenly risen to 1.06 million, exceeding the prior high of 718,000 set in 2018.
An active address is one that has made a transaction in the last 24 hours. The number of active addresses can reveal the level of on-chain activity from developers and projects uploading updates to their work or platforms and traders executing basic token transfers. There’s a chance that the ETH network will be unusually busy until and after the merger.
Source: https://www.cryptopolitan.com/ethereum-exceeds-btcs-future-trading-volume/