While Bitcoin has moved sideways after a rejection of over $ 40,000, Ethereum has overheated from a low of around $ 1.7,000. The second cryptocurrency by market cap is trading at $ 2,702, an area that was tipped into support after a 10% rally yesterday.
ETH supports the daily chart critically. Source: ETHUSD Tradingview
Before the crash, ETH has more evidence of strong belief in price action than Bitcoin and others in the Crypto Top 10. Now the trend could continue as investors continue to hope that Ethereum will outperform Bitcoin in terms of market cap.
Data from Messari indicates that flippening is already present in other metrics. Researcher Ryan Watkins claimed that ETH’s trading volume has risen above that of Bitcoin since September 2020, as shown below.
In 2021, ETH’s trading volume increased with the rise in the price of the cryptocurrency. After a brief drop from Mach, the metric has bounced back to hit an all-time high of $ 20 billion for the spot market, Watkins said.
The study assumes that due to its use cases, ETH has more chances of becoming a global store of value than Bitcoin. He predicts that ETH and its practical applications will grow as more and more investors, users and developers use their tools. Watkins said:
In retrospect, it will be apparent that the winning digital store of value was the asset that was used as money rather than money.
Banking giant Goldman Sachs recently released a report on the possibility of ETH beating BTC. Similar to Watkins, the report claims that there are more “real uses” for the former.
Backed by an ecosystem of smart contracts, non-fungible tokens, and other decentralized applications, Ethereum could rule over the future financial system. Goldman Sachs said:
The greater number of transactions between Ether and Bitcoin reflects this dominance. As cryptocurrency spreads more widely in DeFi and NFTs, Ether will build its own first mover advantage in applied crypto technology.
Ethereum-based derivatives skyrocketed in May
Data from the Skew display shows an increase in Total Open Interest (OI) for Ethereum’s options. As of May 24, that metric was approximately $ 4.5 billion. ETH-based options hit a monthly high on May 11th when all options traded on Deribit, OKEx, Huobi and bit.com were $ 7 billion.
In terms of trading volume, ETH Options recorded a monthly high of USD 2 billion on May 3, with a steady increase until the crash on the crypto market. BTC Options saw a similar volume move on May 17, peaking at $ 3 billion.
Overall, the ETH option volume reached a new all-time high of 15 billion US dollars in May after a rapid increase in 2021. Ethereum’s metrics for the derivatives sector have fallen with price. However, they show a surge in interest in ETH as an institutional asset, a narrative that is growing stronger by the minute.
The volume of Ethereum options hits a new ATH of $ 15 billion this month. pic.twitter.com/MfGwDMOSYT
– Documentation from Ethereum @ (@DocumentEther) May 26, 2021