Ethereum had a very busy week last week – the continuation of ETH being moved off exchanges, large U.S. corporations announcing the integration of Ethereum, and new all-time highs for ETH.
Let’s examine some notable Ethereum (ETH) updates/news from last week.
1. On-Chain Update – ETH: All Exchanges Reserve
Image Source: CryptoQuant
According to CryptQuant’s “ETH: All Exchanges Reserve” chart, the amount of ETH held in all exchanges’ wallets is still in a steady decline. This makes sense due to the busy week Ethereum had last week. We touch on all the bullish things that happened last week for Ethereum below.
As long as this chart is showing a decline (which it has for a few months now), we can use this as one of the many indicators for the bullishness of ETH. ETH holders are remaining optimistic for ETH’s future price and are removing their ETH from exchange wallets – meaning, not looking to sell anytime soon. This helps reduce the sell pressure of ETH and also helps reduce the floating supply of ETH.
2. On-Chain Update – ETH: All Exchanges Netflow
Image Source: CryptoQuant
Once again, we look at another chart from CryptoQuant’s “ETH: All Exchanges Netflow.” Briefly, Netflow is the difference between an asset flowing into and out of exchanges. The formula for calculating Netflow is simple, “inflow – outflow = Netflow.”
When taking a look at this chart, we can see that the current Netflow of ETH on all exchanges is negative (-110k). Using the formula for Netflow, we get a negative Netflow through a higher outflow than inflow. This comes in conjunction with the previous chart we examined. ETH is being taken out of all exchanges’ wallets. Historically, when Netflow is negative (more so by a substantial amount), the price of ETH tends to increase.
On March 29, Visa announced that it will be accepting USD Coin (USDC) for payments over the Ethereum blockchain. This is huge for Ethereum, as it displays trust in the Ethereum blockchain from a major corporation. To put this into perspective, Visa is worth $480 billion and raked in roughly $22 billion in revenue just last year. This alone will do numbers for the mainstream adoption of Ethereum.
— VisaNews (@VisaNews) March 29, 2021
With Visa taking this initiative, we may see something similar when other large corporations announce that they will be using the Ethereum blockchain for their settlement layer as well.
On March 30, PayPal announced that it will be allowing customers to checkout with cryptocurrencies from the millions of merchants that utilize PayPal’s service. At checkout, customers will be able to select their cryptocurrency of choice – Ethereum, Bitcoin, Bitcoin Cash, and Litecoin.
Today, we are announcing the launch of Checkout with Crypto, a new way for PayPal customers to check out with #Cryptocurrency to pay for select online purchases. https://t.co/RbOe8aLtlz pic.twitter.com/zGWHgbwVlU
— PayPal (@PayPal) March 30, 2021
Some components of this new PayPal feature include:
- Only one type of cryptocurrency can be used for a purchase.
- Once the purchase is confirmed, the cryptocurrency is converted to fiat currency by PayPal.
- PayPal will not charge a transaction fee for a crypto checkout.
With PayPal having roughly 360 million active users, this will help boost mainstream adoption of Ethereum and the rest of the cryptocurrency market.
5. ETH Hits New All-Time High
On April 2, ETH soared past its previous all-time high of $2,040 set on February 20 – reaching as high as $2,140. We think that all the bullish news surrounding Ethereum last week, which we just discussed, most likely played a part in this.
At the time of publication, ETH is trading around $2,126 with a 24-hour trading volume of $32.59 billion.
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