The cryptocurrency Ethereum (ETH) blockchain has seen a decline in daily trading volume and number of transactions (both 7-day averages) this month.
According to data from The Block, daily trading volume fell by more than 55% on the 25th of this month compared to July 30th.
Compared to Bitcoin, Ethereum has fewer institutional investors than spot ETFs (exchange-traded funds).
Some people believe that the demand for Ethereum is not high.
The graph for Block is as follows. The trading volume on July 30 was $6.56 billion (approximately 947 billion yen).
), but as of the latest data on the 25th of this month, it had fallen to $2.9 billion (about 419 billion yen). The graph below shows the number of transactions per day.
The number of transactions was 1.07 million, the lowest since February 16th of this year. The busiest days of the year were March 24th and 25th, with both at 1.32 million transactions.
According to The Block, with five days left in the month, monthly transactions stood at more than 27.2 million, the lowest since May 2020.
The figure for July 2002 was 35.5 million. In the financial market, August traditionally coincides with the summer vacation season, so transactions tend to decrease, and this is called the "summer recession market."
Ethereum began trading in the US as a spot ETF on the 23rd of last month, but due to this anomaly and the sudden drop in the financial market on the 5th of this month, the ETH price has risen by 1.5% since the time of writing.
As of now, it is trading at around $2,600 (approximately 370,000 yen), down more than 18% from the previous month. Valentin Fournier, an analyst at BRN, said:
He told The Block that Ethereum has seen weaker institutional demand for a physical ETF compared to Bitcoin.
"The Bitcoin Spot ETF has seen net inflows for seven consecutive days (probably from the 15th to the 23rd)," Fournier said.
"However, an Ethereum spot ETF has lagged even as outflows from Grayscale's ETHE have tapered off."
"One of the reasons for the lack of demand from institutional investors is the loss of restakage opportunities," he said.
As such, they expect Ethereum to continue lagging behind in the future, and BRN recommends increasing allocations to Bitcoin.
2024/08/27 11:20 KST
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