Ethereum Gets $1 Billion Trade Influx; ETH Price Jumps 23%
Ethereum felt the boost of a $1 billion trade influx in the five days leading up to Thursday, September 13th, as the coin rebounded from a new fourteen month low of $170.58.
The majority of the trades came against Tether (USDT), as the un-tethering process begins following the coin’s most recent bottom. The value of ETH consequently jumped 23% since yesterday and returns the coin to temporary safety above the $200 mark.
ETH Price Jumps 23%
After a week in which Ethereum was one of the worst hit, the coin felt the benefit of one of the strongest rebounds in the market cap top one-hundred. ETH rose from yesterday’s price of $170.58 and climbed throughout last night and most of Thursday afternoon en route to a valuation of $210.01.
The peak came at around 17:00 UTC before levelling off between $203 and $205. Trade volumes remained following the peak, hovering around the $2.2 billion range. That’s $1 billion more than this time five days ago, and a near 100% increase in less than a week. Predictably, the majority of Thursday’s Ethereum trades came against USDT, with over 40% of the day’s action coming in the form of ETH/USDT. Even if we exclude the trades with unknown fee types according to CoinMarketCap, USDT still finds itself as the most exchanged for Ethereum.
Notably, close to $350 million worth of trades came straight from good old fiat dollars. That’s close to a third of Ethereum’s daily trade volume from this time five days ago, and suggests that a significant number of people have faith that the recent low of $170 will prove to be the bottom for the immediate future.
Not since BitConnect’s short-lived rebound has 23% growth seemed so insignificant. Buyers who thought they were getting bottom prices at the $400 range are still nursing 50% losses in little over a month.
The knock-on effect of Ethereum’s drop since August has been immense. Lots of businesses and websites in the crypto-sphere use Ethereum for all of their operating revenue. Imagine you’re running a successful small business only to find that half of your operating funds disappeared in the past month.
This could end up being a strong case against every-day crypto adoption, after all, what self-respecting business owner can afford to check the crypto market 24/7 in case their standard currency suddenly plunges without a trace.
Or, to take a more level-headed approach, the time to set up your business using cryptocurrency alone is simply not now. Maybe more sophisticated methods will emerge in the future as the space develops. For now, Ethereum holders can take solace in Thursday’s rebound.
Featured image courtesy of Shutterstock.