May 23, 2022

Great Indian Mutiny

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Over $30 Billion Pumped Into Ethereum Market Cap In 7 Days As Ethereum Overtakes Bitcoin

Cryptocurrency is in second place Ethereum He appears to have found a short-term ground with the asset recording an increase in capital inflows.

Between March 20 and March 27, the market capitalization of Ethereum gained about $31 billion, from $346.7 billion to $377.1 billion amid expectations about proof of stake (PoS) upgrade.

Ethereum market value in US dollars; Lasty 7 days. Source: CoinMarketCap.com

Although the market will be watching to see if recent gains are extended, Ethereum has been keeping capital flowing for two weeks. The uptrend has been awakened from March 15th after the successful launch of Ethereum “merge” On the furnace test network, where experts attributed the upgrade to the rally.

PoS will enable investors to participate in Ether, a capability that will likely attract more players to the platform. In addition, the PoS protocol will significantly reduce the power consumption of Ethereum and will have a higher attractiveness among institutional investors who are interested in the environment, social, and governance (ESG).

It should be noted that the original has outweighed Bitcoin During the same period recorded fluctuations in market value.

Drivers interested in Ethereum

According to the head of institutional coverage at FalconX, Aya KantorovicExcitement about the upgrade is sparking interest in Ethereum.

Besides the promotion, Kantrorovich also linked the growth to other market activities such as rise of about bitcoin.

She stated that the capital inflow may also result from hedge funds and individual investors who take a share of their profits from Bitcoin and transfer them to Ethereum.

Furthermore, Kantorovich noted that while Bitcoin trades under Ethereum, the number one cryptocurrency is recording a drop in volatility.

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She stated that institutional players are now influencing the price of bitcoin, hence the recent trading in correlation to stocks.

“So we’re seeing that volatility come down, which really needs mass adoption, both with what we’re seeing across the desk. I’m starting to see bitcoin trading very similar to some assets in traditional finance. Overall, there’s more liquidity in the markets and institutions are driving the price Bitcoin”.

Although Ethereum currently holds a lower market share, some analysts believe that the continued development of the blockchain will put it ahead of Bitcoin. Overall, Bitcoin’s market dominance is a key aspect to watch, with the metric standing just above 40%.

Related video: Ether outperforms Bitcoin for a second week