Several cryptocurrencies lost value amid the price correction in the market. Ethereum, the largest altcoin on the market, is down 25% from its peak of $2,130. The Feb. 23 coup sunk the value of the digital asset by as much as $1,348. But the price of ETH quickly stabilized. At the time of writing, the process sits at $1,600.
Despite the decline, the recovery has created a bullish situation, particularly for buyers. Institutions are using the near-term decline in digital assets like ETH and Bitcoin to line their pockets. According to the data, more than 10,000 ETH were added to Grayscale’s Ethereum Trust in the last day when the price of ETH fell below $1,400.
With this latest addition, total ETH holdings have reached a current value of 3.17 million ETH or $5.1 billion.
Despite the recent downtrend in price, the overall momentum in the Ethereum market remained on the rise. The second largest digital currency has returned its investors 118% year-to-date. The sharp declines after the $2,000 record were used as an opportunity by institutions and others to acquire more ETH.
ETH has become the other exciting cryptocurrency that cryptocurrency investors are looking for. While the price is also signaling a big increase, users are expecting more returns from the digital asset. Skewed information showed fewer liquidations taking place as ETH price fell. This situation reinforced the “HODL” narrative.
Less liquidations on the way up pic.twitter.com/gHFh5cxHAM
— skew (@skewdotcom) February 24, 2021
High interest in Ethereum (network (98) 0)
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The Ethereum market is also gaining increasing attention due to the launch of ETH futures by CME. The platform saw a record transaction volume of nearly $160 million on Feb. 22 as prices fell.
As interest in the market increased, it contributed to the rising gas price on the ETH network. As the price retreated from $2,000, ETH prices surged to $37.60 on Wednesday, its highest level in nearly 6-year history.