Holders of the five-year-old cryptocurrency were reportedly in profit after it has surged from Black Thursday in March and reach a two-year high of $400 on Saturday.
Over 90% of the current supply of ETH is now considered "in the money" aka in profit. pic.twitter.com/5OeDSm6RXK— Anthony Sassano | sassal.eth 👨🌾 (@sassal0x) August 3, 2020
It had a dramatic movement in just 15 minutes on August 01, sources say. First, it peaked at $418 then it dropped by 25% and settles in $385 within 10 minutes, as of writing the security is at $393. Experts noted that the two factors that prompt for Ethereums price action are market structure and a sudden sell-off at the price of an asset that led to a cascade of liquidations - when a long contract gets liquidated, the holder has to sell the contract, causing more selling pressure.
Anthony Sassano, the co-founder of Ethereum resource platform EthHub, explained that the price is volume-weighted, this means that the average price security traded was based on volume and price. Many speculate that the responsible force for the cryptocurrency’s boom is the explosive growth of the Decentralized Finance or the DeFi market in a short period. DeFi market is the use of blockchain, digital assets, and smart contracts in financial services without the need for a centralized authority. An article published illustrates that the attraction of “yielding farming”, the process of earning a return on capital by putting it to productive use, noticed that the market cap for DeFi token hosted on Ethereum hit $8 billion last week, currently the total value locked up on its smart contracts is over $4 billion.
Ethereum’s developers' eyes to launch this month Medalla, the final testnet of Ethereum 2.0 as part of the blockchain platform's major upgrade. This upgrade aims to eliminate miners from the network and reward users for participating in the network.