Ethereum has recently lost its $1,750 support on the 22nd of March which ended up being a loss of 7%, and futures worth $230 million of contract liquidations. Currently, the cryptocurrency is holding strong near the support of $1,670- despite investors unwilling to create newer positions. This goes contrary to their price going below 11% of the previous week.
Binance Chain had a recent development as they went past the transaction volume of Ethereum. This inspiring growth has influenced the tampering of the optimism of investors. The NFT frenzy which has taken over the cryptocurrency market has played its part in shifting newer projects away from the high fees that Ethereum puts up.
If this seemed less complicated, the DeFi protocols have already started looking for alternatives- which resulted in PancakeSwap amassing a fortune worth $4.46 billion in TVL. In the interim period, the developers of Ethereum have been trying to rectify the situation with the Berlin update.
Their aim was to reduce the cost of transactions. It has been forecasted that the upgrade will soon go live on the 14th of April- but there have been quite a few market leaders who believe that there wouldn’t be that big an impact on the overall cost per transaction.
The futures premium is still bullish for Ethereum
More often than not, ‘basis’ is usually referred to as the premium in futures- as it measures the divide between spot levels of the market, and the futures contracts in the long term. An annualized premium of 10% to 20% is usually referred to as neutral. The difference in price at that point reflects the opportunity cost of arbitrage- which has a stablecoin staking rate.
The data might not be worrisome at the end of the day- for Ethereum has already gained a massive 74% in the current year.
