Ethereum posts lowest performance since August 2022, losing $61 million

According to market reports, Ethereum witnessed its biggest outflows since August 2022. Digital assets, including Ethereum, are experiencing an outflow for the third consecutive week, totaling $30 million. It seems that Bitcoin’s investor sentiment is changing slowly and significantly. 

Media reports suggest that most digital assets logged slight inflows, and trading volume is still below the annual average of $14.2 billion. Multi-asset and exchange-traded products backed by Bitcoin showed remarkable inflows of $18 million and $10 million, respectively.

Short Bitcoin products’ outflows indicate a radical shift in investor sentiment. The recent market trend indicates that Ethereum is the worst-performing asset despite positive cryptocurrency sentiment. The USA dominated the charts with inflows of $143 million, followed by Brazil and Australia. Germany, Canada, Hong Kong, and Switzerland are in the chart after America, Brazil, and Australia. 

The latest market trend negatively impacts Ethereum and the broader digital asset market. Bitcoin, Ethereum, Solana, Binance, and Litecoin are the trendsetters in the cryptocurrency market today. Both Solana and Litecoin showed a massive positive market trend just recently.

Ethereum’s recent outflow is synonymous with the upcoming approval of Spot Ether ETFs on July 4, 2024. The global crypto industry closely monitors this recent development, which is the culmination of nearly three years of planning. Blockchain equities faced a backlash in the form of outflows of $545 million, and the exchange-traded fund outflow ruled out the previous forecast of outflows from Bitcoin ETFs. 

According to the cryptocurrency industry’s information, many alternative currencies experienced inflows, including Solana, which received $1.6 million, and Litecoin, which recorded $1.4 million. Chainlink and XRP brought in $0.6 million and $0.3 million, respectively. Former American President Donald Trump’s support for the crypto industry is likely to create a more favorable regulatory environment.

The recent development will expedite the approval process for spot exchange-traded funds in addition to crypto and Bitcoin. The outflows experienced by blockchain-related equities amount to 19% of assets under management. ENS (Ethereum Name Service), the native token of Ethereum, has undergone significant price spikes in recent times. Increased enthusiasm for the upcoming ENSv2 upgrade fuels this development, promising a renewed outlook on the efficacy and scalability of the Ethereum Name Service. Recently, the Ethereum Name Service showed signs of redeemability after times of ups and downs.

The recent announcement regarding the Ethereum upgrade had a huge effect on the prices of digital assets. The creators of the new upgrade claim that its new version will improve affordability, scalability, and flexibility. The Ethereum upgrade announced in May 2024 resulted in a vital change in price performance patterns. 

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The recent market trend is anticipated to reignite the crypto rally, although the exact time frame of the launch has not yet been disclosed. This is a clear indication of the significant stemming of the outflows, and ETF flows have subsequently become the primary focal area for the international crypto community. The cryptocurrency investor community gauges the health and interest in the cryptocurrency market through ETF flows.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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