Ethereum had a very busy week last week, with continued withdrawal of ETH from exchanges, the announcement of major US corporations of Ethereum integration, and new all-time highs for ETH.
Let’s take a look at some of the important Ethereum (ETH) updates / news from the past week.
1. Update within the network – ETH: reserve of all exchanges
Image source: CryptoQuant
According to CryptQuant’s “ETH: All Exchanges Reserve” chart, the amount of ETH held in wallets across all exchanges is still steadily declining. This makes sense because of the busy week Ethereum spent last week. We cover all the bullish events that happened last week for Ethereum below.
As long as this chart shows a decline (which has been observed for several months now), we can use it as one of many indicators of ETH bullishness. ETH holders are optimistic about the future price of ETH and are removing their ETH from exchange wallets, that is, they do not plan to sell in the near future. This helps reduce the selling pressure of ETH and also helps reduce floating ETH supply.
2. Update on the network – ETH: Netflow of all exchanges
Image source: CryptoQuant
We look again at another chart from CryptoQuant “ETH: All Exchanges Netflow”. In short, Netflow is the difference between an asset entering an exchange and an asset leaving it. The formula for calculating Netflow is simple: “inflow – outflow = Netflow”.
Looking at this graph, we can see that the current net flow of ETH across all exchanges is negative (-110k). Using the formula for Netflow, we get negative Netflow due to higher churn than inflow. This is related to the previous diagram we examined. ETH is withdrawn from wallets of all exchanges. Historically, when Netflow is negative (to a large extent, by a significant amount), the price of ETH tends to rise.
On March 29, Visa announced that it will accept United States dollar coins (USDC) for payments through the Ethereum blockchain. This is very important for Ethereum as it demonstrates trust in the Ethereum blockchain from a large corporation. For comparison: the cost of Visa is 480 billion dollars, and only last year, the revenue was about 22 billion dollars. This alone will make a difference to the massive adoption of Ethereum.
– VisaNews (@VisaNews) March 29, 2021
When Visa takes this initiative, we may see something similar when other large corporations announce that they will also use the Ethereum blockchain for their tier of settlements.
On March 30, PayPal announced that it will allow customers to settle using the cryptocurrency of millions of merchants using PayPal. When placing an order, customers will be able to select their cryptocurrency of their choice – Ethereum, Bitcoin, Bitcoin Cash and Litecoin.
Today we are announcing the launch of Checkout with Crypto, a new payment method for PayPal customers. # Cryptocurrency to pay for selected purchases on the Internet. https://t.co/RbOe8aLtlz pic.twitter.com/zGWHgbwVlU
– PayPal (@PayPal) March 30, 2021
Some of the components of this new PayPal feature include:
- Only one type of cryptocurrency can be used for a purchase.
- Once the purchase is confirmed, the cryptocurrency is converted by PayPal to fiat currency.
- PayPal does not charge transaction fees when paying for cryptocurrency.
Considering PayPal has around 360 million active users, this will help drive the massive adoption of Ethereum and the rest of the cryptocurrency market.
5.ETH hits a new all-time high
On April 2, ETH surpassed its previous all-time high of $ 2040 set on February 20, reaching USD 2,140… We think that all the positive news around Ethereum last week that we just discussed probably played a role in this.
At the time of publication, ETH is trading around $2.126 with a 24-hour trading volume of $ 32.59 billion.
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