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The price of Ethereum rose 13.21% in one week. What does this increase mean? The rise in price indicates that more retail and institutional traders will be trading spot and derivative exchanges.
However, trading volume on spot exchanges still fluctuates around mid-October levels. In fact, while the trading volume increased to over $ 300 million on November 4, 2020, despite the current price hike, the trading volume has not yet reached its monthly ATH.
Is the trading volume lacking in the ongoing ETH price hike?
Additionally, according to Skew data, the total daily volume for ETH reached $ 500 million in September 2020 and around $ 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 significant impact on trading volume.
The volume of trading on the derivatives exchanges was approximately $ 6.5 billion.
In the first week of September 2020, the trading volume was double the current level. At the time of writing, ETH was valued at $ 435, with the price of a high-end 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 went from $ 9.58 billion to $ 12.12 billion in September 2020, according to DeFiPulse data. During its rally in July 2020, DeFi’s bull run pushed trades on the ETH network and thus likely moved the ETH price north. Indeed, TVL’s current rise is lower than the July 2020 rally.
