Ethereum Price Holds Steady After Briefly Surpassing Bitcoin in Trade Volume
The Ethereum price consolidated in a narrow range Saturday following an unexpected surge in trading volume. According to CoinMarketCap, ether trade volumes came within $50 million of the $12 billion mark at 10:14 UTC, levels not seen since the height of the bull market.
Ether Price Update
Ether has traded within a relatively narrow range over the past 24 hours, with prices hovering between $463 and $473. At the time of writing, the cryptocurrency was valued at $466 million.
The second-largest cryptocurrency by market cap is virtually unchanged over the past seven days and is up a mere 2.6% for July. By comparison, bitcoin has added 10.5% over the past seven days and 28% this month.
The total cryptocurrency market was worth $297 billion on Saturday, little changed from 24 hours ago.
Ethereum Trade Volumes
The more compelling story was the sudden and persistent growth in ether trade volumes over a 13-hour period. According to data provided by CoinMarketCap, Ethereum trade volumes surged from around $1.7 billion to more than $11.9 billion between Friday and Saturday. At press time, 24-hour volumes had returned to $1.6 billion.
On the face of it, surging trade volumes are a sign of growing liquidity, something the cryptocurrency market has sorely lacked over the past six months. For cryptocurrencies, a sudden spike in turnover is usually accompanied by higher prices.
While CoinMarketCap data are cited industry wide for their reliability, it is not clear whether Ethereum’s daily transaction figures are accurate. As Hacked reported last week, several digital currency exchanges have been outed for producing “fake volumes,” something CoinMarketCap has even acknowledged.
In a blog post published July 19, CoinMarketCap said it was adopting new minimum volume requirements for exchanges seeking a listing on the website. However, the company acknowledged there was no way to enforce compliance.
“While we have a relationship with most of the exchanges listed on our site, there is no guarantee that any of them will respond or comply to any specific guidelines, but we have to continue showing users the best approximation of price and volume based on all the data we have available.”
That being said, Ethereum’s volume spike was accompanied by a similar rise in overall trade volumes. Using the same CoinMarketCap data, total trade volumes surged from $15.8 billion to $37.7 billion over the same 13-hour period.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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