Ethereum has been one of the top performing cryptocurrencies in the last few days, with the recent boom allowing it to create a significant gap between its current price levels and recent lows.
This uptrend was fueled in part by the upward move in the aggregate market, but was sustained by news of a significant inflow of institutional funds into cryptocurrency in Q1 2020.
Now, ETH is showing a significant spike in high-value transaction volume, suggesting that big players are moving tokens amid this recent bullish move.
Ethereum is seeing a remarkable influx of institutional funding
According to the latest quarterly report from Grayscale Investment, the company notes that inflows into its Ethereum Trust have skyrocketed recently, reversing those of Bitcoin in the post-March 10th period.
Image courtesy of Grayscale
This unprecedented turn in institutional inflows marked the end of a quarter in which ETH saw a massive increase in the number of institutions directing its capital.
Spencer Noon, head of crypto investing at DTC Capital, spoke in a recent tweet about the news of the inflow of “smart money” funding into Ethereum:
“Institutional investors are buying ETH. The cat is officially out of the bag. From the latest [Grayscale] Report: Ethereum Trust saw $ 110 million in inflows. This is more than all previous inflows in the last 2 years combined (95.8 million USD). “
It’s unclear what sparked this sudden spike in ETH institutional funding, but it may have been partly due to Bitcoin’s strong outperformance earlier in the year.
ETH sees sudden spikes in large transactions, data shows
Data from blockchain analytics firm IntoTheBlock reveals an interesting trend that Ethereum has been watching over the past few days, with the cryptocurrency seeing a 120 percent increase in high-volume transactions.
Large transactions – defined as those valued in excess of $ 100,000 – rose from 360 on April 15 to 819 the next day. That spike coincided with the release of Grayscale data and a price rally from lows of $ 150 to highs of $ 175.
ETH saw a significant increase in large transactions in 2020, with the average number increasing significantly from most of 2019 – when they hovered between 180 and 290 per day.
Image courtesy IntoTheBlock
The rise in that number could be the result of increased institutional engagement in the market, a positive sign of the fundamental growth of Ethereum.
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