Ethereum is leading the mining of the crypto market

Ethereum is leading the mining of the crypto market
Ethereum is leading the mining of the crypto market

Ethereum (ETH) is leading the mining of the crypto market. The price is up almost 10% in the last seven days, while BTC is up 7.5%.

The crypto market is recovering and Ethereum is showing the best returns

The total capitalization of the crypto market is up 11%, mainly led by Ethereum’s growth and some pullbacks. The fact is that the merger is getting closer and closer, prompting many speculators to do so buy ETH in anticipation of further gains.

In addition, for the first time in 2022, ETH’s trading volume reached 50% of BTCand it outperformed Bitcoin throughout July thanks to strong bullish inflows in both spot and derivatives markets.

The average size of individual trades on the ETH/USD pair also increased in July, suggesting that large traders are reinvesting in ETH as sentiment picks up.

The market depth for the trading pairs ETH/USD and ETH/USDT also recovered strongly.

The market depth of ETH

These three trends suggest that traders have consistently rotated funds to ETH in recent weeksprobably in anticipation of Merge and in the wake of the broader recovery of the cryptocurrency market.

Overall, the price of ETH ended the month of July with one of the best performances among major cryptocurrencies, albeit well behind the +145% increase for Ethereum Classic (ETC).

A confirmation of the overall recovery may be the fact that the Curve 3 pool returned for the first time to a liquidity profile similar to that before implosion of the Terra ecosystem. This is one of the most systemically important stablecoin pools in the DeFi markets.

In the days leading up to the collapse, the pool contained 24% USDT, 36% USDC and 40% DAI, while on May 18th it had become 74/13/13. This imbalance continued through July, but in recent days the pool has returned to 26/38/36, although TVL is still well below the May highs.

The future of Ethereum after the merger

It is safe to say that in July the crypto markets experienced a strong turnaround, led precisely by ETH with a rise of 54%. BTC stopped at +20%.

Not only is the anticipation of possible rises resulting from the September merger attracting new capital to ETH, but it is also possible that some may want to buy ETH to hold in the event of a fork.

In fact, with Merge, the current ETH tokens will actually be replaced with an equal number ETH2 tokens, but there are already those who have announced that they want to share the current Ethereum protocol to continue mining the current blockchain even after difficulty bomb have managed it no longer viable. By forking, they will avoid the difficulty bomb to continue mining blocks on the old blockchain, thus also keeping alive the current ETH1 tokens, which will be replaced with ETH2 tokens.

Although the market value of the ETH1 tokens may collapse once the merger is completed, there are those who hope this way to gain something by doubling the tokens, albeit with different counter values ​​in fiat currency. Therefore, there are also those who buy ETH to wait for the potential fork.

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