Ether moves past Bitcoin’s daily volume as the Grayscale ethereum trust trades at an 11% premium with the coin seeing a renewed interest in the aftermath of BTC’s price moves over the past week as reported in the Bitcoin news.
Ether moves past bitcoin with its 24-hour volume topping the one of BTC by a wide margin. It’s still a long way from doubling Bitcoin’s volume as some proponents suggested. The data from CoinGecko circulated on Twitter and showed that the daily volume of Ether surpassed $115 billion while BTC sat at $53 billion. Coingecko’s co-founder and COO Bobby Ong revealed that the data depicted in the screenshots were not accurate due to an API error or wash trading, and resulted in inflated ETH volumes. Ong stated that CoinGecko disabled the data feed since then and the platform now shows Ether driving 20% more volume than BTC over the past 24 hours with $60 billion trade compared to BTC’s $50.2 billion.
“Ether beats bitcoin as a store of value. The Ethereum ecosystem…provides developers a way to create new apps. Most of DeFi apps are being built on Ethereum. The greater number of transactions in ether vs bitcoin reflects this dominance” – Goldman Sachs Global Macro Research pic.twitter.com/vNkQ1HlDYM
— SantΞago R Santos (@santiagoroel) May 22, 2021
While the CoinGecko BTC page saw about 75% more traffic than its ETH page over the past week, the gap narrowed down over the past day as Ong noted:
“In the past 24 hours, our Bitcoin page received about 60% more traffic compared to Ethereum. When it comes to search queries, Bitcoin received only about 7% more queries compared to Ethereum.”
This is what I mean, $ETH both on spot exchanges and institutional (grayscale) is flippening $BTC in volume
macro Market structure on $ETH is more bullish than BTC too
Look at Goldman’s comments as well as other institutional investors, you can see where the money is flowing https://t.co/v7vZoWNkSk
— Pentoshi 🐧wont DM you (@Pentosh1) May 25, 2021
The surging trade activity and interest coincided with the Grayscale Ethereum Trust seeing its premium over spot ETH prices that bounced 11%. The BTC trust traded at a discount since March and the data suggests that some institutions are turning their focus to ETH rather than BTC. ETH’s volume surged to overtake BTC a few days after segments of the reports by Goldman Sachs revealed that the bank thinks Ether has a higher chance of overtaking BTC as a dominant store of value. The reports noted the growth of the decentralized finance and NFT systems being built on Ethereum as well as ETH’s dominance over BTC by transaction volume.
As previously reported, Ethereum was holding the ground above $3120 support levels and the price was still well below the $3600 level and the 100 hourly simple moving average. There was a key break above the key bearish trend line with the resistance close to the $3380 on the hourly chart of ETH/USD with the pair likely forming a double bottom pattern near the $3125 zone. Ethereum extended its drop below $3500 but remained steady above $3120 zone with the coin making two attempts to clear the $3120 and the $3100 support levels but the bears failed.
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