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Ethereum Leads Crypto Market Recovery

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Ethereum (ETH) is leading the recovery in the crypto market. The price is up almost 10% over the past seven days, while BTC is up 7.5%.

Crypto Market Recovers and Ethereum Posts Best Returns

The overall capitalization of the crypto market is up 11%, driven mainly by Ethereum growth and some rebounds. The fact is that the merger is getting closer and closer, prompting many speculators to buy ETH in anticipation of further rises.

In addition, for the first time in 2022, ETH trading volume hit 50% of BTCand it outperformed Bitcoin throughout July on strong bullish entries in spot and derivatives markets.

The average individual trade size on the ETH/USD pair also increased in July, suggesting that major traders are reinvesting in ETH as sentiment improves.

Market depth for ETH/USD and ETH/USDT trading pairs also rebounded strongly.

ETH Market Depth

These three trends suggest that traders have constantly has moved funds into ETH in recent weeksprobably in anticipation of Merge and following the broader recovery of the cryptocurrency market.

Overall, ETH price closed July with one of the strongest performances among major cryptocurrencies, although far behind the +145% rise for Ethereum Classic (ETC).

Confirmation of the global recovery could be the fact that the Curve 3 pool has returned for the first time to a liquidity profile similar to that before the implosion of the Terra ecosystem. It is one of the most systemically important stablecoin pools in the world. Challenge markets.

In the days leading up to the collapse, the pool contained 24% USDT, 36% USDC and 40% DAI, while on May 18 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 May’s highs.

The future of Ethereum after the merger

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

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

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

Although the market value of ETH1 tokens may plummet once the merger takes place, some are hoping to gain something by doubling the tokens, but with different fiat currency equivalents. Therefore, there are also those who buy ETH to hold it until the potential fork.


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