Ethereum’s price rose 13.21% in a week. What does this increase mean? The rise in price indicates that more retail and institutional traders will trade on spot and derivative exchanges.
However, the trading volume on spot exchanges is still fluctuating around mid-October levels. In fact, while the trade volume increased to over $ 300 million on November 4, 2020, despite the current price increase, the trade volume still has not reached its monthly ATH.
Is Trade Volume Lacking In The Ongoing ETH Price Rally?
Also, according to data from Skew, the total daily volume for ETH reached $ 500 million in September 2020 and about $ 600 million in August 2020. Both volume levels were triggered by a price rally on Ethereum’s charts. However, the current rally has not yet had a major impact on trade volume.
The trading volume in the derivatives exchanges was about 6.5 billion dollars.
In the first week of September 2020, the trade volume was twice the current level. At the time of writing, ETH was valued at $ 435, with the price of a range cryptocurrency last seen in July 2020. It should be noted, however, that the July 2020 price rally is short-lived.
In response to ETH’s rally, DeFi’s TVL rose from $ 9.58 Billion to $ 12.12 Billion in September 2020, according to data from DeFiPulse. During its rally in July 2020, DeFi’s bull run pushed transactions on the ETH network and therefore likely moved the ETH price northward. In fact, the current increase in TVL is lower than the July 2020 rally.