As Bitcoin pokes its head back up above the $7000 mark this morning, many crypto traders are looking at an option perennially called the cryptocurrency runner-up to Bitcoin – the Ethereum coin and its smart contract ecosystem.
Analysts report today that the entire volume of ETH-based transactions has now overtaken Bitcoin volumes in today’s current market.
“Value transfer on Ethereum differs slightly,” writes Sebastian Sinclair at Coindesk. “As well as its own ether (ETH) cryptocurrency, Ethereum supports assets from third parties that can be sent and received over its network. For the above chart, value transfer on Ethereum refers to the USD value of both ETH and the Ethereum-based stablecoins that are transferred on on a given day.”
What does that mean?
Looking more closely at this equation, analysts are identifying stablecoin contracts based on Ethereum foundations as a major part of this new volume activity.
Specifically, they’re looking at the Tether stablecoin that’s been so controversial in some exchanges, and yet so functional in a new kind of cryptocurrency landscape where coins can be pegged to the U.S. dollar for stability.
Some suggest one of two fundamental causations: either a move away from riskier cryptos, or a proposed entrance point in light of Federal Reserve activity that’s scaring investors.
“In the past, rise in the volume of Tether has acted as a precursor to the rise in the Bitcoin and crypto-markets as more volume enters the crypto-markets,” wrote Nivesh Rustgi at Coingape March 27. “It also implies that the traders might waiting on the sidelines waiting for a better … entry into the markets, as Coronavirus situations seems to be getting worse with each passing day.”
Keep an eye on USDT – while BTC is still mostly in the limelight, USDT and other ETH-based contracts may be on the rise for a good reason.
