According to The Block, the trading volume of Ethereum derivatives has increased by 38% in the past 24 hours, exceeding 110 billion US dollars, while the prices have risen sharply. CoinGlass data shows that the trading volume of Ethereum derivatives exceeded that of Bitcoin derivatives, with the trading volume of Bitcoin derivatives reaching 84.72 billion US dollars during the same period. As of 11:30 p.m. on Tuesday, the price of Ethereum rose by 4% to $2,790, the highest level since February.
Analysts point out that the sharp increase in Ethereum trading volume is not accidental but reflects its structural growth, institutional recognition and practical application value. The following are some factors driving the growth of Ethereum derivatives trading volume:
Continuous inflow of funds into the US spot Ethereum ETF: The US spot Ethereum ETF has been experiencing a continuous net inflow. Before Monday, the related funds had positive inflows for 16 consecutive days. According to Sosovalue’s data, during this period, the Ethereum ETF attracted nearly 890 million US dollars in funds cumulatively.
Decentralized finance and NFT ecosystems regain interest: Decentralized finance and non-fungible token (NFT) ecosystems are still mainly dominated by Ethereum and have once again aroused people’s interest. Data from Defi Llama shows that the total value locked (TVL) in decentralized finance protocols is currently $118.8 billion, an increase of 32% compared to $89.97 billion on April 10. NFT marketplace OpenSea has recently launched an improved platform called OS2, with its monthly active users reaching the highest level since 2023.
The positive statement of the U.S. Securities and Exchange Commission: Paul Atkins, the chair of the U.S. Securities and Exchange Commission (SEC), recently stated at the roundtable of the Decentralized Finance Crypto Task Force that the right to self-custody of an individual’s private property is a “fundamental value of the United States”, and this right should also exist in the digital domain. This statement was released on the SEC’s official X account on Tuesday, enhancing market confidence.
Ethereum network Upgrade: The Ethereum Pectra upgrade launched earlier this year has also contributed to its development. This upgrade addressed scalability and cost-effectiveness issues that had previously posed challenges to developers.
Analysts believe that the price trend of Ethereum will be strong in the short term, but key levels also need to be watched. The resistance level is around $3,600 and the support level is around $2,800. If the Ethereum ETF that supports staking is approved later this year, this could serve as a catalyst, pushing the price of Ethereum to the range of $5,500 to $6,700 in December. In the long term, Ethereum has a “constructive” outlook, supported by fundamental factors such as its deflationary supply mechanism, increased adoption of Layer 2 networks, inflows of institutional funds, its dominant position in the decentralized finance sector, and continuous protocol upgrades. However, Dominic John, an analyst at Kronos Research, added that recent regulatory uncertainties, such as the SEC’s delayed decision on the Ethereum ETF that supports staking, could bring volatility.
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