Amid the market decline, Investors have shown interest in crypto and invested $ 74 million in products based on them over the past week, according to a new report from CoinShares.
Ethereum-based products were the most popular. As a result, the share of ETH in the total volume of all crypto funds reached a record 27%. At the same time, the outflow of capital from bitcoin continues. For 7 days, his funds lost $ 4 million. Also, such coins as Cardano, Polkadot and XRP were in demand among investors. They raised $ 5.2 million, $ 3.8 million and $ 4.5 million, respectively.
CoinShares analysts note that the last week was positive in terms of capital inflows after assets were leaving funds for two weeks. The net outflow for these two weeks amounted to $ 151 million, or 0.34% of the total capital of crypto funds. Bitcoin funds lost $ 246 million in three weeks, while other cryptocurrencies continued to attract investments. Since the beginning of the year, the inflow of funds to Bitcoin funds remains positive and amounts to $ 4.4 billion. For ether, this value is $ 973 million, despite the superiority at the last stage.
Ethereum has resumed inflows and raised $ 47 million in the last week. The rate correction did not have a big impact on investment flows. Funds transfers indicate the continued popularity of altcoins. The data also suggests that Proof-of-Stake coins are in the highest demand.
According to statistics from CoinGecko, Ether is now the second most traded asset on the crypto market after Tether and outperforms Bitcoin. The turnover of the leading coins in 24 hours amounted to $ 106.3 billion, $ 38.6 billion and $ 33 billion, respectively.
Situation with the first crypto
Most of the big Bitcoin holders have taken advantage of the market decline to increase their positions. And they did it with an impressive discount from the historical maximum. Analysts said that the “bigwigs of the market” bought over 77,000 BTC.
But what next for Bitcoin? Nikolaos Panigirtzoglu, strategist at the slightly biased JPMorgan bank, allowed the cryptocurrency to fall further.
The fair price for Bitcoin, according to the analyst, is the range of $ 24,000- $ 36,000. And he called the market crash a cold shower for institutional investors, who, according to him, will now be much more careful in their actions.
Ethereum will overtake Bitcoin?
According to the famous entrepreneur and former CEO of investment giant Guggenheim Partners Todd Morley, Ethereum “has more practical value than Bitcoin”. We are talking about smart contracts.
The well-known entrepreneur’s commentary came under the headline “Ethereum may soon overtake Bitcoin“. It mentions that over the past 12 months, the popularity of so-called decentralized finance has skyrocketed – the use of Ethereum-based technology to recreate traditional financial instruments such as bank loans. In fact, blockchain protocols can replace the banks we are used to.
The demand for non-fungible tokens or NFTs, which are primarily issued on the Ethereum blockchain, is also driving interest in the coin.
Recall that earlier this month, Goldman Sachs noted in its report that “Ethereum has a high chance of overtaking Bitcoin”. Billionaire investor Mark Cuban is also sure of this. According to him, the long-awaited Ethereum 2.0 update will lead to the development of applications that will “outshine” Bitcoin.