Ethereum Network Sees Increase in Transactions and Volume
The number of transactions on the Ethereum network has risen from 1.1 million to 1.3 million in the past week, reaching a level not seen since November 2021. This surge in activity coincides with a significant increase in transaction volume, with the economic throughput of ETH on Ethereum rising from $2.8 billion to over $4 billion.
Ether Holds Above $2,500 Amidst Bitcoin ETF Approvals
Since the approval of multiple spot bitcoin ETFs by the Securities and Exchange Commission, the price of ether has remained above $2,500. As of now, ether is trading at $2,554 according to The Block’s Price Page.
Elevated Supply of Ether in Profit Poses Correction Risks
The circulating supply of ether currently shows that 91.5% is in profit, a level not seen since 2021. This high percentage of profitable holdings may incentivize traders to sell, potentially impacting the short-term price of ether.
Liquidations Reach Nearly $20 Million on Centralized Exchanges
In the past 24 hours, significant price fluctuations in ether have led to approximately $20 million worth of liquidations on centralized cryptocurrency exchanges. Most of these liquidated positions were longs, totaling $11 million according to Coinglass data.
Hot Take: Ethereum Network Activity Surges, but Ether’s Profitable Supply Raises Concerns
The Ethereum network is experiencing a significant increase in transactions and transaction volume, reaching levels not seen since 2021. While this surge in activity is positive for the network, the elevated percentage of ether in profit raises concerns. With 91.5% of ether currently in profit, traders may be tempted to sell, potentially impacting the price of the digital asset in the short term. Additionally, recent price fluctuations have led to substantial liquidations on centralized exchanges. It will be important to monitor these factors as they could influence the future trajectory of Ethereum and its native cryptocurrency, ether.
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